Adani Group under fire: bribery claims lead to market turmoil
ECONOMY & POLICY

Adani Group under fire: bribery claims lead to market turmoil

In Mumbai, a year after Hindenburg's claims stirred Gautam Adani's business empire, news surfaced of US authorities investigating a bribery allegation that has affected the influential business group. Stocks and bonds of Adani companies experienced a decline following reports that US prosecutors had expanded their investigation to examine potential involvement of an Adani company, including group chairman Gautam Adani, in a payoff to officials in India for favourable treatment on an energy project.

This development led to a collective loss of approximately Rs 255 billion in market capitalisation for Adani companies by the end of Monday's trading session. Dollar bonds of various Adani group companies, such as Adani Green, Adani Ports and Special Economic Zone, Adani Transmission, and Adani Renewable Energy RJ Ltd, slipped around 2%, eroding recent gains.

According to US laws, federal prosecutors are authorised to investigate foreign bribery and corruption allegations if they have links to American investors and markets. Such inquiries can potentially impact future debt-raising prices in international markets.

A senior debt market official commented, "The recent investigation news follows renewed investor confidence seen when Adani Green Energy raised $409 million after a year marked by Hindenburg's allegations of fraud and stock manipulation. While the dollar bonds recovered in the second half of the day, the market would closely track the papers."

Although Adani stocks have rebounded since the release of the Hindenburg report on 25 January 2023, six of the group's stocks are still trading below their pre-Hindenburg prices. On Monday, Adani Total Gas experienced the most significant decline, dropping 4.2% to close at Rs 947.25, while Adani Energy Solutions fell 3.5% to Rs 1,009. Shares of Adani Enterprises, the group flagship, decreased by 0.5%, while shares of Ambuja Cements, ACC, NDTV, and Adani Wilmar declined by more than 2%.

Since 2 February 2023, the group's market capitalisation has surged by over Rs 88 trillion. However, Monday's market cap of Rs 155.1 trillion was Rs 36.9 trillion lower than the high of 24 January 2023.

In Mumbai, a year after Hindenburg's claims stirred Gautam Adani's business empire, news surfaced of US authorities investigating a bribery allegation that has affected the influential business group. Stocks and bonds of Adani companies experienced a decline following reports that US prosecutors had expanded their investigation to examine potential involvement of an Adani company, including group chairman Gautam Adani, in a payoff to officials in India for favourable treatment on an energy project. This development led to a collective loss of approximately Rs 255 billion in market capitalisation for Adani companies by the end of Monday's trading session. Dollar bonds of various Adani group companies, such as Adani Green, Adani Ports and Special Economic Zone, Adani Transmission, and Adani Renewable Energy RJ Ltd, slipped around 2%, eroding recent gains. According to US laws, federal prosecutors are authorised to investigate foreign bribery and corruption allegations if they have links to American investors and markets. Such inquiries can potentially impact future debt-raising prices in international markets. A senior debt market official commented, The recent investigation news follows renewed investor confidence seen when Adani Green Energy raised $409 million after a year marked by Hindenburg's allegations of fraud and stock manipulation. While the dollar bonds recovered in the second half of the day, the market would closely track the papers. Although Adani stocks have rebounded since the release of the Hindenburg report on 25 January 2023, six of the group's stocks are still trading below their pre-Hindenburg prices. On Monday, Adani Total Gas experienced the most significant decline, dropping 4.2% to close at Rs 947.25, while Adani Energy Solutions fell 3.5% to Rs 1,009. Shares of Adani Enterprises, the group flagship, decreased by 0.5%, while shares of Ambuja Cements, ACC, NDTV, and Adani Wilmar declined by more than 2%. Since 2 February 2023, the group's market capitalisation has surged by over Rs 88 trillion. However, Monday's market cap of Rs 155.1 trillion was Rs 36.9 trillion lower than the high of 24 January 2023.

Next Story
Infrastructure Urban

Paras Defence Subsidiary Wins Rs 460 Mn Anti-Drone Order

Paras Defence and Space Technologies (PDST) saw its shares rise 1.5 per cent to Rs 701 after its subsidiary, Paras Anti-Drone Technologies, secured a defence contract from the Ministry of Defence, Government of India, valued at approximately Rs 460.19 million.The order covers the supply of Anti-Drone Systems, including Drone Jammers, marking a significant milestone for Paras Anti-Drone in India’s growing counter-UAV segment. The contract is scheduled for execution by March 2026. According to official filings, the award is from a domestic entity, not a related party transaction, and no promot..

Next Story
Building Material

Jindal Stainless Launches First Stainless Steel Fabrication Unit in Mumbai

Jindal Stainless, India’s largest stainless steel manufacturer, through its subsidiary Jindal Stainless Steelway (JSSL), has inaugurated its first stainless steel fabrication unit at Washivali, Patalganga, Mumbai. The 4 lakh sq ft facility is designed to serve the bridge sector, fabricating critical components such as girders, arches, nuts, bolts, and handles. The unit was inaugurated by CEO & CFO Tarun Khulbe in the presence of senior leadership.Developed with an initial investment of Rs 1.25 billion, the facility strengthens Jindal Stainless’ position as a provider of end-to-end fabr..

Next Story
Infrastructure Energy

Hero Future Energies Secures Rs 19.08 Bn for 120 MW Hybrid Project

Hero Future Energies (HFE), through its SPV Clean Renewable Energy Hybrid Three, has secured Rs 19,080 million in funding from State Bank of India (lead) and Canara Bank for the development of its 120 MW renewable energy (RE) hybrid project in Kurnool, Andhra Pradesh.The project, contracted with SJVN, integrates wind, solar, and storage technologies to provide reliable peak power. The funding, structured with a 21-year repayment tenure, will support timely project execution and the commencement of commercial operations.This financial closure underscores the banking community’s confidence in ..

Latest Updates

Products

Smart Hot Water

Products

Smart Heritage Lock

Products

Ultra-Efficient Motors

Products

Smart Solutions

Products

Next-Gen Seal

Products

Smart Kitchen Chimney

Products

Premium Coverage

Products

Noise Blocker

ECONOMY & POLICY

India’s Rs 370 Bn Petrochemical Expansion to Shift Asian..

Real Estate

Maharashtra Sets Up Authority to Boost Self-Redevelopment

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?