Adani Group stocks tanked up to 8 per cent during the trading session on Monday amid the reports that the US is probing Adani Group and founder over potential bribery.
Adani Group stocks tanked up to 8 per cent during the trading session on Monday amid the reports that the US is probing Adani Group and founder over potential bribery, focusing on the founder of the Indian conglomerate Gautam Adani. All 10 listed Adani Group entities were seen in red.
Bloomberg, citing sources to the matter, said that investigators are digging into if Adani Group, or people linked to the conglomerate including Gautam Adani, were involved in paying officials in India for favourable treatment on an energy project.
The US Attorney’s office for the Eastern district of New York and the Justice Department’s fraud unit in Washington are handling the investigation and are also looking at Indian renewable energy company Azure Power Global, the report added. In its clarification, Adani Group told Bloomberg that they are not aware of any investigation against its chairman.
Shares of Adani Green Energy Ltd tumbled 8 per cent to Rs 1749.75 on Monday, with a market valuation slipping below Rs 3 lakh crore. Another cash market stock Adani Total Gas Ltd, crashed about 7.88 per cent to Rs 912.80, with its market capitalization holding above Rs 1 lakh crore mark. Both stocks had settled at Rs 1901.80 and Rs 990.85, respectively, on Friday.
Adani Enterprises Ltd , the flagship company of the Adani Group, tumbled 5 per cent to Rs 2976 on Monday, as its marketcap slipped below Rs 3.5 lakh crore. The scrip had settled at Rs 3,132.50 in the previous trading session. Adani Ports & Special Economic Zone, another Adani Group blue-chip, fell 4.23 per cent to Rs 1228.30, against its close at Rs 1,282.60 on Friday.
Adani Energy Solutions Ltd declined about 6.95 per cent to Rs 972.05 at the opening tick, while Adani Power Ltd shed 4.4 per cent to Rs 508. They command a total market capitalization of more than Rs 1.15 lakh crore and Rs 2 lakh crore, respectively. Adani Wilmar was down 2.96 per cent at Rs 334.25.
Among the acquired entities, shares of ACC Ltd dropped about 3.1 per cent to Rs 2426.05, while another cement major Ambuja Cements Ltd shed over 3 per cent to Rs 583.05. New Delhi Television (NDTV) shares were down 2 per cent to Rs 214.50 during the early session.
Adani Group’s stocks and bonds saw a massive selloff in January 2023 after US-based short-seller Hindenburg Research issued a damning report that alleged improper governance practices, stock manipulation and the use of tax havens by the group. The Indian company has denied these allegations.
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