Adani Group stocks extend slide amid bribery charges. Details here

Adani Group stocks: This marks the second consecutive session of heavy losses for the conglomerate, with Thursday's rout wiping out Rs 2.25 lakh crore from the group's market capitalisation.

In Short

• Adani Group shares tumble for second straight day
• Adani Energy Solutions, Green Energy stocks drop over 8%
• Adani Group dismisses charges, assures compliance with all laws

Shares of Adani Group companies continued their steep decline on Friday, following allegations of a multi-million-dollar bribery and fraud case involving Chairman Gautam Adani and seven others. The charges, filed in a US federal court, have rattled investor confidence despite the group’s denial of any wrongdoing.

Adani Energy Solutions and Adani Green Energy were among the hardest hit, plunging as much as 9% in early trade. Adani Energy Solutions was down 8.48% at Rs 640.50 on the Bombay Stock Exchange (BSE), while Adani Green Energy fell 7.51% to Rs 1,060.35. Shares of other Adani Group companies, including its flagship Adani Enterprises, also traded lower as concerns over the case mounted.

This marks the second consecutive session of heavy losses for the conglomerate, with Thursday’s rout wiping out Rs 2.25 lakh crore from the group’s market capitalisation. The magnitude of the sell-off is the worst since the Hindenburg Research report in January 2023.

DETAILS OF BRIBERY ALLEGATIONS

According to the US Department of Justice filing, the alleged bribery scheme spanned from December 2019 to July 2020. The indictment claims that $228 million (Rs 1,926 crore) was offered to an unnamed high-ranking official in Andhra Pradesh to facilitate the state’s power distribution companies agreeing to purchase seven gigawatts of solar power from the Solar Energy Corporation of India (SECI).

In total, $265 million (Rs 2,238.5 crore) in bribes were allegedly paid to Indian government officials to secure favourable power sale agreements, benefiting Adani Green Energy. The company also allegedly made misleading claims about its anti-corruption practices during a 2021 bond offering aimed at raising funds from international investors.

ADANI GROUP'S RESPONSE

The Adani Group has dismissed the allegations as baseless. In a statement on November 21, the company assured stakeholders of its compliance with all laws and announced plans to explore legal recourse. “We are a law-abiding organisation and remain committed to transparency and integrity,” the statement read.

The case has cast a shadow over the group’s operations, with investors closely monitoring further developments.