Thu Nov 21 12:16:46 UTC 2024: ## Adani Enterprises Stock Plunges 23% After US Bribery Indictment
**MUMBAI, INDIA** – Shares of Adani Enterprises Ltd. plummeted by as much as 23.59% on Thursday, hitting a day’s low of Rs 2,155, following a US indictment charging Gautam Adani, chairman of the Adani Group, with bribery and fraud. The stock closed 23.45% lower at Rs 2,159, representing a 30.71% decline over the past six months.
The indictment alleges that Adani, his nephew Sagar Adani, and former Adani Green Energy CEO Vneet Jaain conspired to bribe Indian officials to secure contracts worth an estimated $2 billion over 20 years for a large solar power project. Prosecutors further allege the trio raised over $3 billion in loans and bonds by concealing this corruption from lenders and investors. All three face charges including securities fraud and wire fraud conspiracy, with the Adanis also facing a separate civil case from the US Securities and Exchange Commission.
In response, Adani Green Energy announced it was halting planned USD-denominated bond offerings. This latest setback follows the January 2024 controversy involving US-based short-seller Hindenburg Research’s allegations of improper offshore tax haven use, which the Adani Group denied.
Market analysts expressed a cautious outlook. Kranthi Bathini of WealthMills Securities advised a “wait-and-watch” approach, citing the stock’s high volatility and suitability only for high-risk investors. Several technical analysts, including those from Angel One, Religare Broking, and Anand Rathi, predicted further short-term declines, with support levels projected between Rs 2,000 and Rs 2,100. However, AR Ramachandran suggested a potential buying opportunity if the stock closes above Rs 2,540. As of September 2024, promoters held a 74.89% stake in Adani Enterprises.
First Piper 