Adani Green responds to US investigation but denies involvement
What's the story
Adani Green Energy has acknowledged a US investigation into possible breaches of anti-corruption laws by an unidentified 'third party.' The company, however, refutes any connection with the entity under investigation. The response follows a Bloomberg report that hinted at an Adani affiliate being investigated for alleged bribes to Indian officials for preferential treatment on an energy project. The news had caused a dip in all the stocks of companies owned by the Adani conglomerate.
Denial
Adani Green refutes notice from US Department of Justice
Adani Green Energy has declared that it hasn't received any notice from the US Department of Justice concerning the allegations mentioned in the Bloomberg report. The company further emphasized its non-association with third parties under investigation, stating it is "thus unable to comment" on the extent of the US investigation into the alleged transactions. The company refrained from providing additional details about this third party. Bloomberg reported that Azure Power Global, an Indian renewable energy company, is also under investigation.
Market sentiment
JP Morgan analysts foresee minimal impact on Adani Group
Despite the ongoing investigation, JP Morgan analysts have upheld their bets on Adani Group. They anticipate that the group will likely experience minimal financial or fundamental impact from this investigation. Shares of Adani Green ended 2.6% lower following news of the US probe into violations of anti-corruption laws. Adani Group's flagship firm, Adani Enterprises, closed 1.9% lower than yesterday.