Adani shares crash 20% as US bribery charges rock conglomerate
Shares of Adani Group companies plunged as much as 20% on the BSE during Thursday's intra-day trade. The plunge comes after US prosecutors charged Gautam Adani and other executives for allegedly bribing Indian officials with $265 million. The worst-hit stocks were Adani Energy Solutions (down 20% at ₹697.70), Adani Enterprises (down 10% at ₹2,538.20), and Adani Ports and Special Economic Zone (down 10% at ₹1,160.15).
Other Adani Group stocks also take a hit
Other Adani Group stocks like ACC (down 10% at ₹1,966.65) and Ambuja Cements (down 10% at ₹494.65) were also affected by the charges, touching their respective lower circuits on the BSE. Shares of Adani Green Energy, Adani Total Gas, Adani Power, New Delhi Television (NDTV), Adani Wilmar and Sanghi Industries also witnessed a decline of 10-20% in intra-day trades.
Adani Group's operational performance remains unaffected
Despite the market reaction, ICICI Securities said the news wouldn't impact the operational performance of Adani Group stocks, including Ambuja and ACC. The statement comes as a reassurance to investors amid potential selling pressure due to these developments. The BSE Sensex was down by 0.57% at 77,134 compared to the significant drops witnessed by Adani Group stocks.
US prosecutors indict Gautam over alleged bribery scheme
Gautam, the billionaire chair of Adani Group, was indicted in New York for his involvement in an alleged multi-billion-dollar bribery and fraud scheme. US prosecutors allege that Adani and seven other defendants, including his nephew Sagar Adani, agreed to pay around $265 million in bribes to Indian government officials. The bribes were allegedly meant to secure contracts expected to yield $2 billion of profit over 20 years and develop India's largest solar power plant project.
