Adani Group stocks fell by up to 8% during the trading session on Monday, following news that the US is investigating Adani Group and its founder for alleged bribery, with a focus on Gautam Adani, the founder of the Indian conglomerate. All ten listed Adani Group entities were highlighted in red.
According to Bloomberg, investigators are looking into whether the Adani Group or others associated with the company, including Gautam Adani, were involved in paying Indian officials for favorable treatment on an energy project.
The inquiry is being handled by the US Attorney's Office for the Eastern District of New York and the Justice Department's Fraud Unit in Washington. Azure Power Global, an Indian renewable energy company, is also being investigated, according to reports. Adani Group clarified to Bloomberg that it is unaware of any investigation into its chairman.
Adani Green Energy Ltd shares fell 8% to Rs 1749.75 on Monday, bringing the market worth below Rs 3 lakh billion. Another cash market stock, Adani Total Gas Ltd, fell roughly 7.88 percent to Rs 912.80, with a market valuation of more than Rs 1 lakh crore. Both stocks closed at Rs 1901.80 and Rs 990.85, respectively, on Friday.
Adani Enterprises Ltd, the Adani Group's main firm, fell 5% to Rs 2976 on Monday, bringing its market capitalization below Rs 3.5 lakh crore. The previous trading session's closing price was Rs 3,132.50. Adani Ports & Special Economic Zone, another Adani Group blue-chip, slid 4.23 percent to Rs 1228.30, after closing at Rs 1,282.60 on Friday.
Adani Energy Solutions Ltd fell approximately 6.95 percent to Rs 972.05 on the opening tick, while Adani Power Ltd down 4.4% to Rs 508. They have a combined market capitalization of over Rs 1.15 lakh crore and Rs 2 lakh crore, respectively. Adani Wilmar was down 2.96 percent to Rs 334.25.
Among the purchased firms, shares of ACC Ltd fell 3.1% to Rs 2426.05, while Ambuja Cements Ltd fell more than 3% to Rs 583.05. NDTV shares were down 2% to Rs 214.50 in the early session.
In January 2023, Adani Group's stocks and bonds experienced a significant selloff after US-based short seller Hindenburg Research produced a devastating report alleging the group's faulty governance practices, stock manipulation, and exploitation of tax havens. The Indian business has refuted the charges.
