Adani stocks dive amid US allegations of $250 million bribe plot

New Delhi (The Uttam Hindu): Adani Group shares took a major hit when the markets opened on Thursday, November 21, 2024, following charges brought by the US Securities and Exchange Commission (SEC) against Adani Group chairman Gautam Adani, Sagar Adani, and Azure Power Global Ltd executive Cyril Cabanes. The charges involve a bribery and fraud case, causing a sharp drop in the stock prices of several Adani Group companies.

Shares of Adani Green Energy Ltd, the primary company involved in the case, saw a steep decline of 16%, losing ₹225.85 to ₹1,185.90. Meanwhile, Adani Enterprises Ltd, the group's flagship company, dropped by 10%, or ₹282.00, settling at ₹2,538.20. The SEC’s charges accuse the Adanis and Cabanes of misleading US investors by orchestrating a bribery scheme with the Indian government. This scheme allegedly involved securing above-market energy prices from the government for Adani Green and Azure Power, benefiting both companies. Adani Green raised over $750 million, including $175 million from US investors, while Azure Power’s stock was traded on the New York Stock Exchange.

The SEC’s complaint demands permanent injunctions, civil penalties, and bars for the individuals involved. It highlights how the Adanis misrepresented the company's anti-bribery program and failed to disclose bribery activities. The agency stressed its commitment to holding corporate officers accountable for violating securities laws. Adani Power Ltd, Adani Ports, Adani Wilmar, ACC Ltd, and New Delhi Television Ltd also saw their stocks fall sharply, reflecting the widespread market impact of the scandal.