Shares of Adani Group companies fell sharply on Thursday, November 21, with losses ranging between 10% and 20% following bribery charges filed by the US District Court and the Securities & Exchange Commission (SEC) against Gautam Adani and senior executives. The group has seen a staggering Rs 2 lakh crore wiped off its market capitalisation.
Adani Ports shares dropped 15%, while flagship Adani Enterprises slid by 20%. Other group stocks also recorded declines within the 10%-20% range.
In or about and between 2020 and 2024, senior executives of an Indian renewable-energy company, which was a portfolio company of an Indian conglomerate, an issuer company that operated in the renewable-energy sector whose securities were traded on the US exchange, and that issuer’s largest shareholder, a Canadian institutional investor, participated in a scheme to bribe Indian government officials to ensure execution of lucrative solar energy supply contracts with Indian Government entities
US District Court stated in its order.
The US District Court alleged that between 2020 and 2024, senior executives of an Indian renewable energy firm under the Adani portfolio engaged in a bribery scheme with Indian government officials. This allegedly secured lucrative solar energy contracts for Adani Group entities.
Adani reportedly raised over $750 million as part of the scheme, with $175 million sourced from U.S. investors, according to the SEC.
Meanwhile, in light of the latest developments, Adani Green Energy has canceled its planned US dollar bond sale.
Gautam Adani’s net worth, now estimated at $69.8 billion by Forbes, places him 22nd on the global rich list, just behind L’Oréal heiress Françoise Bettencourt Meyers ($70.8 billion).
In 2023, Adani Group ranked as India’s second-largest cement producer. It generated $38 billion in revenue in 2022 and employed over 26,000 people. Its portfolio includes India’s busiest shipping port, eight airports, and extensive power transmission networks.
The indictment arrives over a year after Hindenburg Research accused the group of large-scale fraud and stock manipulation. The report alleged the “largest con in corporate history” and led to a $65 billion loss in Adani’s net worth, cutting $112 billion from the group’s market valuation.
Adani denied the allegations at the time, which triggered a major market sell-off across the conglomerate’s businesses.
