Shares of Adani Group companies lost about $28 billion in market value in morning trade on Thursday after US prosecutors charged the billionaire chairman of the Indian conglomerate in an alleged bribery and fraud scheme.
Gautam Adani's flagship company Adani Enterprises tumbled 23 per cent, while Adani Ports, Adani Total Gas, Adani Green, Adani Power, Adani Wilmar and Adani Energy Solutions, ACC , Ambuja Cements and NDTV fell between 20 per cent and 90 per cent.
Adani group's 10 listed stocks had a total market capitalisation of about $141 billion at 0534 GMT, compared to $169.08 billion on Tuesday.
US authorities said Adani and seven other defendants, including his nephew Sagar Adani, agreed to pay about $265 million in bribes to Indian government officials to obtain contracts expected to yield $2 billion of profit over 20 years, and develop India's largest solar power plant project.
Adani Green in a statement on Thursday said the US Justice Department had issued a criminal indictment against board members Gautam Adani and Sagar Adani and the Securities and Exchange Commission had issued a civil complaint against them.
The US Justice Department also included Adani Green board member Vneet Jaain in the criminal indictment, it said.
Adani Green's units had decided not to proceed with the proposed US dollar denominated bond offerings due to developments, it added.
"Investors will shy away from Adani Group stocks ... and that's what this sharp selling is signifying," said Saurabh Jain, assistant vice president of retail equities research at SMC Global Securities.
"This could hurt the credibility of the group and maybe borrowing costs will rise," he said.
The indictment comes nearly two years after US shortseller Hindenburg Research alleged that Adani had improperly used tax havens and was involved in stock manipulation, allegations the conglomerate denied.
Also in early Asian trading on Thursday, Adani dollar bonds slumped, with prices down 3c-5c on bonds for Adani Ports and Special Economic Zone. The falls were the largest since the Adani Group came under a short-seller attack in February 2023.
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Finally!!! Great job!
It is a mystery why the Saravana Group does not attract the attention of any agency.
Raid them thoroughly and destroy this nest of black money hungry snakes.
Tax raids were almost forgotten during the last 10 years of congress rule! Why? Same intelligence was there, but it was used to force the target to give donations to party fund.
Reliance Jewelers and Gujjus are not making good business. Time to raid these south Indian companies.
missionaries money. their family has three different groups.. one more gold loan group having more than 10000 branches in all over India, even they penetrated place like munger,jamalpur, gonda, like small towns.. Where ever they working they placed kerla Christian should be there and he/she is responsible & coordinator between local church authority & foreign donor/ conversion group.
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