Thu Nov 21 14:19:56 UTC 2024: ## Adani Enterprises Shares Plummet After US Indictment for Bribery and Fraud

**MUMBAI, INDIA –** Shares of Adani Enterprises Ltd. experienced a dramatic 23.45% plunge on Thursday, hitting a day’s low of Rs 2,159, following a US indictment accusing Chairman Gautam Adani and other executives of bribery and fraud. The indictment, filed in the US District Court for the Eastern District of New York, alleges that Adani, his nephew Sagar Adani, and former Adani Green Energy CEO Vneet Jaain, conspired to bribe Indian government officials to secure contracts worth an estimated $2 billion over 20 years for a large solar power project. The charges include securities fraud, securities fraud conspiracy, and wire fraud conspiracy. A separate civil case was also filed by the US Securities and Exchange Commission.

Adani Green Energy, in response, announced that its subsidiaries would halt planned USD-denominated bond offerings. This latest development comes after the Adani Group faced accusations of improper use of offshore tax havens from US-based short seller Hindenburg Research in January 2024, allegations the group denies.

Market analysts expressed concerns, with several predicting further short-term declines. Kranthi Bathini of WealthMills Securities advised a “wait-and-watch” approach, citing the stock’s high volatility and suitability only for high-risk investors. Technical analysts from various firms pointed to potential support levels around Rs 2,000 to Rs 2,100, while resistance levels were cited at Rs 2,270 and Rs 2,500. One analyst suggested a buying opportunity only if the stock closes above Rs 2,540. As of September 2024, promoters held a 74.89% stake in Adani Enterprises. The stock’s six-month decline now totals 30.71%.

Read More