Mumbai: Shares of Adani Group companies experienced a sharp decline of up to 20% today after US prosecutors indicted Gautam Adani and seven others on charges of bribery and fraud.
The indictment alleges that Adani and his associates paid approximately $250 million in bribes to Indian officials to secure lucrative contracts for solar energy projects, which were expected to generate $2 billion in profits over 20 years.
The fallout from these allegations has been swift and severe. Adani Energy Solutions saw its share price drop by 20%, while other group companies, including Adani Enterprises, Adani Ports and Special Economic Zone, ACC, and Ambuja Cements, also faced significant declines. The market capitalization of Adani Group stocks fell by nearly ₹2 lakh crore, reflecting investor concerns over the potential long-term impact of these charges.
In addition to the criminal charges, the US Securities and Exchange Commission (SEC) has filed a civil complaint against Adani and his associates, accusing them of defrauding American investors and global financial institutions through false and misleading statements.
This development has further eroded investor confidence, leading to a broad sell-off across Adani Group stocks.
The Adani Group has yet to issue an official statement in response to these allegations. However, market analysts predict continued volatility for the conglomerate’s shares as the legal proceedings unfold.
