On March 18, shares of all 10 Adani group companies experienced a downturn following reports from Bloomberg that the US government had expanded its inquiry into the conglomerate regarding potential bribery allegations.
In early trading, the flagship Adani Enterprises Ltd saw a nearly 4 percent drop, while Adani Ports and Special Economic Zone Ltd declined by nearly 3 percent.
As of 11:03 am, Adani Wilmar Ltd and Adani Power Ltd were down over 1 percent, with Adani Total Gas Ltd, Adani Energy Solutions Ltd, Adani Green Energy Ltd, and Adani Energy Solutions Ltd all trading 2-3 percent lower.
Earlier, on March 15, Bloomberg disclosed that the US authorities were examining the actions of founder and Chairman Gautam Adani, probing whether Adani entities or affiliates had engaged in bribery to secure favorable treatment on energy projects in India. The investigation is being handled by the US Attorney’s office for the Eastern District of New York and the Department of Justice’s fraud unit. Adani stated it had no knowledge of any investigation against the company or its founder.
This development comes on the heels of allegations made by short-seller Hindenburg Research last year, accusing Adani of fraud and market manipulation. Adani vehemently denied these claims and was subsequently cleared by the Securities and Exchange Board of India.
By 11:25 am, shares of Adani Enterprises had decreased by 2.2 percent to Rs. 3,065. Over the past year, the stock has recorded a gain of nearly 70 percent. Adani Ports, which observed a nearly 3 percent decline on March 18, has seen an increase of over 87 percent in the past year.
Meanwhile, the benchmark Nifty exhibited a 0.3 percent decline, resting at 21,962.40. Of the Nifty 50 stocks, 30 were trading lower while 20 were in positive territory.
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