This morning there was a huge fall in the shares of Adani Group. Shares of Adani Enterprises, Adani Green Energy and Adani Energy Solutions saw a decline of 10-20 percent during early trade. Its effect has also been seen on the Indian stock market. Nifty fell 187 points to 23,330, while Sensex weakened by 549 points and was trading at 77,028. This weakness in the group’s shares has been seen after the American Prosecutor accused Gautam Adani of bribery and fraud.
Adani Group shares hit lower circuit
Shares of Adani Enterprises fell 10 percent and closed at lower circuit at Rs 2,539.35. There was improvement in prices after the revelations of Hindenburg Research, but they have still failed to return to the old price range. Adani Green Energy shares fell 17 percent to Rs 1,172.5, while Adani Energy Solutions shares fell 20 percent to Rs 697.25.
Due to this the stock declined
US prosecutors have alleged in a case filed in Brooklyn, New York that Adani Group paid bribes worth $250 million (Rs 2,100 crore) to win solar power contracts in India. In this, Gautam Adani, Sagar R Adani and Vineet S Jain have been accused of misleading American investors and obstructing justice. The indictment also mentions efforts to destroy electronic evidence and mislead US agencies including the FBI.
A decline was also recorded in bonds
Adani Group’s dollar-denominated bonds also saw a big decline. Adani Green Energy’s March notes fell to 15 cents, a record, while Adani Electricity Mumbai’s February 2030 bonds fell 8.6 cents. This decline is the largest since the financial loss seen in 2023, Hindenburg Research reports.
Will these allegations become a headache for Adani Group?
The latest controversy has come to light at a time when Adani Group is focusing on reducing debt and stabilizing its financial position. In March 2023, the company has made an advance payment of Rs 7,374 crore in share-backed financing. Apart from this, the group has planned to raise $1.5 billion in recent months to fund new projects and reduce debt.
