Adani Group Stocks Crash Amid U.S. Bribery Allegations

Adani Group Stocks Tumble Amid U.S. Bribery Allegations

Adani Group companies witnessed a sharp decline in their stock prices on Thursday following allegations of bribery involving Gautam Adani, the group chairman. U.S. prosecutors have accused Adani and other executives of paying $265 million in bribes to Indian officials to secure lucrative contracts, resulting in major financial and reputational repercussions for the corporation.

Key Stocks Hit Lower Circuits

Major Adani Group companies, including:

Adani Energy Solutions (down 20% to ₹697.70),
Adani Enterprises (down 10% to ₹2,538.20),
Adani Ports (down 10% to ₹1,160.15),
ACC (down 10% to ₹1,966.65), and
Ambuja Cements (down 10% to ₹494.65),

hit their lower circuits on the BSE during early trading. Other Adani Group Stocks like Adani Green Energy, Adani Total Gas, and NDTV have also dropped by 10%-20%.

Adani Group Stocks Fallout from U.S. Indictment

The allegations state that Adani executives conspired to bribe officials for favorable treatment on large-scale energy projects, including India’s largest solar power plant. As a result, Adani Green Energy has canceled a $600 million dollar bond issuance. The company cited the criminal indictment by the U.S. Department of Justice and a complaint by the U.S. Securities and Exchange Commission (SEC) as reasons for shelving the bond offering.

Market Outlook

Analysts expect the group to face continued selling pressure in the near term. However, ICICI Securities noted that these developments are unlikely to affect the operational performance of Adani companies. The broader impact on investor sentiment, particularly in overseas bonds, remains significant.