India’s Adani Group sees US$22 billion in value wiped off after US indictments

SHARES of Adani Group companies lost about US$22 billion in market value in early trade on Thursday (Nov 21) after US prosecutors charged the billionaire chairman of the Indian conglomerate in an alleged bribery and fraud scheme.

Gautam Adani’s flagship company Adani Enterprises fell 10 per cent, while Adani Ports, Adani Total Gas, Adani Green, Adani Power, Adani Wilmar and Adani Energy Solutions, ACC, Ambuja Cements and NDTV fell between 8 per cent and 20 per cent.

Adani group’s 10 listed stocks had a total market capitalisation of about US$147 billion at 0411 GMT, compared to US$169.1 billion on Tuesday.

US authorities said Adani and seven other defendants, including his nephew Sagar Adani, agreed to pay about US$265 million in bribes to Indian government officials to obtain contracts expected to yield US$2 billion of profit over 20 years, and develop India’s largest solar power plant project.

Adani Green on Thursday said the US Justice Department had issued a criminal indictment against board members Gautam Adani and Sagar Adani and the Securities and Exchange Commission had issued a civil complaint against them.

The US Justice Department also included Adani Green board member Vneet Jaain in the criminal indictment, it said.

Adani Green’s units had decided not to proceed with the proposed US-dollar denominated bond offerings due to developments, it added.

The indictment comes nearly two years after US short-seller Hindenburg Research alleged that Adani had improperly used tax havens and was involved in stock manipulation, allegations the conglomerate denied.

Also in early Asian trading on Thursday, Adani dollar bonds slumped, with prices down 3c-5c on bonds for Adani Ports and Special Economic Zone. The falls were the largest since the Adani Group came under a short-seller attack in February 2023. REUTERS

Share with us your feedback on BT's products and services