Adani Group stocks faced sharp declines on November 21, following bribery allegations against founder Gautam Adani by US federal prosecutors. Shares of Adani Enterprises, Adani Green Energy, and Adani Energy Solutions nosedived between 10-20% during early trading.
- Adani Enterprises: Hit a 10% lower circuit at Rs 2,539.35.
- Adani Green Energy: Dropped 17% to Rs 1,172.5.
- Adani Energy Solutions: Plunged 20% to Rs 697.25.
Key Allegations:
US prosecutors have charged Gautam Adani and other Adani Group executives, including Sagar R Adani and Vneet S Jaain, in connection with a $250 million (~Rs 2,100 crore) bribery scheme. The charges allege:
- Bribery to secure Indian solar energy contracts.
- False statements to US investors.
- Destruction of evidence and obstruction of justice.
Additionally, the SEC has filed a civil lawsuit over securities violations, compounding the group’s troubles.
Impact on Bonds:
Adani Group’s international bonds also saw sharp declines:
- Adani Green Energy March Notes: Fell 15 cents, a record drop.
- Adani Electricity Mumbai February 2030 Bonds: Dropped 8.6 cents.
Context and Financial Moves:
This controversy follows the massive fallout from the 2023 Hindenburg Research report, which erased over Rs 12 lakh crore in combined market value of Adani stocks and bonds.
- In March 2023, the group prepaid Rs 7,374 crore of share-backed financing to reduce debt.
- Recent fundraising efforts include:
- $1 Billion QIP (August 2024) by Adani Energy Solutions.
- $500 Million Share Sale (October 2024) by Adani Enterprises for new energy projects and debt reduction.
- Planned $1.5 Billion Dollar Bonds issuance by Adani Green Energy and Adani Energy Solutions for refinancing in early 2025.
The renewed scrutiny has sparked significant volatility in Adani stocks and bonds, raising concerns among investors globally.
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Source: Moneycontrol
News Desk
