Adani Group Shares Crash 20 Per Cent Amid US SEC Bribery And Fraud Allegations

Adani Group share price: Adani Enterprises, the flagship company, hit the lower circuit at Rs 2,539.35, down 10 per cent

By : ABP News Bureau | Updated at : 21 Nov 2024 10:56 AM (IST)

Other Adani Group firms, including Adani Ports and Special Economic Zone, ACC, and Ambuja Cements, also hit their respective lower circuits, with losses of up to 20 per cent.
Source : Adani Group

Adani Group share price: Adani Group stocks saw losses on Thursday after US federal prosecutors filed bribery charges against the conglomerate's founder, Gautam Adani. Shares of major group firms, including Adani Enterprises, Adani Green Energy, and Adani Energy Solutions, witnessed declines of 10-20 per cent in early trade on Thursday.

Adani Enterprises, the flagship company, hit the lower circuit at Rs 2,539.35, down 10 per cent. The stock, which had recovered significantly from its post-Hindenburg Research lows, remains far from its previous highs. Adani Green Energy shares plunged 17 per cent to Rs 1,172.50, while Adani Energy Solutions dropped 20 per cent to Rs 697.25, also reaching its lower circuit.

Other group firms, including Adani Ports and Special Economic Zone, ACC, and Ambuja Cements, also hit their respective lower circuits, with losses of up to 20 per cent. Stocks such as Adani Total Gas, Adani Power, NDTV, Adani Wilmar, and Sanghi Industries saw declines ranging between 10 per cent and 20 per cent in intra-day trading.

The sell-off was triggered by charges filed in a Brooklyn court accusing Gautam Adani and other executives, including Sagar R. Adani and Vneet S. Jaain, of orchestrating a $250 million (Rs 2,100 crore) bribery scheme to secure solar energy contracts in India. The indictment alleges that the accused made false statements to US investors and violated federal laws.

In response, Adani Green Energy said, "The United States Department of Justice and the United States Securities and Exchange Commission have issued a criminal indictment and brought a civil complaint, respectively, in the United States District Court for the Eastern District of New York, against our Board members, Gautam Adani and Sagar Adani. The United States Department of Justice have also included our Board member, Vneet Jaain, in such criminal indictment. In light of these developments, our subsidiaries have presently decided not to proceed with the proposed USD-denominated bond offerings."

The allegations come as Adani Group is still reeling from the impact of the Hindenburg Research report earlier this year, which accused the conglomerate of stock manipulation and accounting fraud. The latest charges have reignited concerns among investors, leading to another wave of scrutiny and volatility in the group’s stocks.

On Thursday, BSE and NSE also plunged in early morning trade. The BSE Sensex slumped 557 points to 77,020, while the NSE Nifty50 was trading at 23,331, declining 187 points.

Published at : 21 Nov 2024 10:56 AM (IST)
Tags :
Gautam Adani Adani Green Energy Adani Enterprise US SEC Adani Group Adani Energy Solutions Adani Group Share Price Adani Group Stock Price

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