Adani Group Under Scrutiny: Shares faced a downturn on March 18

Adani Group

New Delhi: Shares across the Adani Group faced a downturn on March 18, following reports from Bloomberg indicating an expanded US investigation into the conglomerate for potential bribery allegations. This news has led to a significant decline in the group’s bond values, with Adani Ports & Special Economic Zone Ltd.’s 2041 bond falling 2.4 cents to 79.1 cents, marking the steepest decline since August. Similarly, Adani Renewable Energy RJ Ltd.’s 2039 bond experienced a drop of 2.3 cents to 83 cents, the most substantial fall since February 2023.

The stock market reacted swiftly, with Adani Total Gas Ltd. shares witnessing a 4% decrease by midday on Dalal Street. Other entities within the group, including Adani Transmission, Adani Ports, Ambuja Cements, ACC, Adani Green, and Adani Enterprises, saw their stocks trading 2-3% lower.

The investigation, led by the US Attorney’s Office for the Eastern District of New York and the Department of Justice’s fraud unit, is examining the actions of Gautam Adani, the founder and Chairman of the Adani Group. The focus is on whether any Adani entities or affiliates were involved in bribing Indian officials to gain preferential treatment in energy projects.

This scrutiny comes on the heels of allegations made by Hindenburg Research last year, accusing the Adani Group of fraud and market manipulation. Although the conglomerate denied these claims and was cleared by the Securities and Exchange Board of India, the shadow cast by the short-seller’s report continues to loom over the group’s shares, which have yet to fully recover.