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.

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

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

ABS Marine Sees CRISIL Credit Rating Upgrade

ABS Marine Services has secured an upgrade to its long term and short term credit ratings from CRISIL, reflecting improved profitability and revenue growth through long term contracts. CRISIL moved the long term rating from BBB+/Stable to A-/Stable and revised the short term rating from A2 to A2+. The action signals strengthened financial metrics and operational resilience. The company benefited from durable client relationships with firms such as ONGC and Schlumberger. The rating decision followed stronger cash flows and an enlarged bank loan facility, which increased from Rs 3,705 million (m..

Next Story
Infrastructure Transport

Project BRAHMANK Marks 16 Years Of Strategic Roads In Arunachal

Project BRAHMANK is marking 16 years of work to establish strategic road and bridge links across Arunachal Pradesh, maintaining and developing 811 kilometres of roads and nearly 86 bridges that range from small culverts to large steel and arch bridges. These transport links are described as critical for ensuring year-round movement of defence personnel, equipment and essential supplies while improving everyday travel for people in remote villages. The project balances national security requirements with regional development by focusing on reliable access in challenging terrain. Notable enginee..

Next Story
Infrastructure Transport

Longleng CSOs Give One Week Ultimatum Over Two-Lane Highway

Civil society organisations (CSOs) in Longleng district have demanded immediate restoration of the deteriorating Changtongya–Longleng two-lane road and sought a detailed status report on the stalled construction within one week. The demand followed a consultative meeting convened under the Phom Peoples' Council (PPC) to discuss welfare and development concerns. PPC president YB Angam Phom said prolonged non-maintenance had caused hardship to commuters and affected transportation, local commerce and the district's development. The meeting urged authorities to undertake immediate restoration a..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement