On Wednesday, Adani Group stocks rose with some rising as much as 16% within the intraday trade after Adani Green Energy dismissed bribery allegations against Gautam Adani and other company officials. Adani Total Gas was the standout with a 16% jump, followed by Adani Power and Adani Green Energy with up to 8% appreciation.
The broader group was also up, with shares of Adani Enterprises rallying more than 7% and Adani Wilmar, Adani Ports & Special Economic Zone, Ambuja Cements, ACC, and NDTV gaining up to 5%.
Clarification from Adani Green Energy
The rise came after Adani Green Energy issued a clarification to stock exchanges stating that neither Gautam Adani, Sagar Adani, nor Vineet Jain have been charged under section 30A of the FCPA relating to the recent indictment served by the United States Department of Justice (DOJ) or the civil complaint by the U.S. Securities and Exchange Commission (SEC).
This clarification gave some relief to investors and set the motion for the rise in Adani stocks. However, the release noted that the individuals have been indicted on securities fraud conspiracy, wire fraud conspiracy, and securities fraud.
Adani Stocks Performance Overview
- Adani Power: Began below at ₹435.50 but rose over 8% and hit a high of ₹485 in intraday trade
- Adani Green Energy: Achievements of up to 10%, which is a sign that investors have regained confidence in the stock market
- Adani Total Gas: Became the star performer and surged 15.85% to ₹671.60
- Adani Enterprises: Increased more than 7% during the day, keeping up the good pace
A subsidiary of the Adani group, April Moon Retail Private Limited (AMRPL), completed the acquisition of a 74% stake in Cococart Ventures Private Limited. It further consolidates the group’s retail capabilities and essentially sets the group up for further growth in this segment.
Regulatory Concerns and Investor Sentiment
The allegations and the subsequent clarification have come at a time when the Indian conglomerate has come under increased regulatory scrutiny. The clarification did assist in calming near-term fears although charges against key executives remain a concern to investors.
The market analysts have urged investors to be cautious as more details on the investigations emerge. However, the good operations and the strategic acquisitions that this group has made ensure that it maintains a vantage position in its markets.
