Business
Adani Stocks Plunge Up to 20% After Gautam Adani Indicted by US Over Alleged $250 Million Bribe Plot
Adani Stocks Plunge Up to 20% After Gautam Adani Indicted by US Over Alleged $250 Million Bribe Plot
On Thursday, November 21, 2024, Adani Group’s stock dropped when markets opened following a startling revelation from the US Securities and Exchange Commission (SEC). About an alleged bribery and fraud plan, the agency revealed that it was charging Sagar Adani, Gautam Adani, the chairman of the Adani Group, and Cyril Cabanes, an official at Azure Power Global Ltd.
Sharp drops were seen in the shares of Adani Group firms, with certain stocks dropping as much as 20% to their intraday lows. Adani Green Energy Ltd., the main business in the case, saw a sharp 16% downfall, going from ₹225.85 to ₹1,185.90. Adani Endeavors Ltd., the gathering’s lead organization, had a 10% decrease in esteem, going from ₹282.00 to ₹2,538.20.
SEC Charges Against Adani Group
Through a vast bribery plot intended to secure a lucrative transaction with the Indian government, Gautam Adani, Sagar Adani, and Cyril Cabanes were accused by the SEC of deceiving US investors. According to the charges, the strategy benefited Adani Green and Azure Power by obtaining above-market rates from the Indian government, so artificially boosting energy prices.
Adani Green raised more than $750 million from investors, with $175 million from US investors, the SEC claims. Another company implicated was Azure Power, which is listed on the New York Stock Exchange. Permanent injunctions, civil penalties, and prohibitions from holding office as officers or directors are also sought in the SEC’s lawsuit.
“As alleged, Gautam and Sagar Adani deceived US investors into purchasing Adani Green bonds through an offering process that misrepresented the company’s anti-bribery compliance program, while Cyril Cabanes engaged in the bribery scheme as a director of a US public company,” said Sanjay Wadhwa, Acting Director of the SEC’s Division of Enforcement.
Market Impact on Adani Group Shares
The SEC charges had immediate repercussions, with Adani Group companies suffering significant stock market losses. Adani Power Ltd’s. stock dropped 69.10 points, or 13.18%, to ₹455. Adani Ports and Special Economic Zone Ltd. was down 10% to ₹1,160.15, and Adani Wilmar Ltd. fell 8.18% to ₹300.35.
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New Delhi TV Ltd. stock down 12.43% to ₹148.30, while ACC Ltd’s. fell 9.61% to ₹1,975.00. Because of the charges, there was a great deal of market unpredictability, which harmed financial backer trust and the Adani Gathering’s standing.
