Thu Nov 21 10:07:14 UTC 2024: ## Adani Group Scraps $600 Million Bond Offering Amid US Bribery Accusations
**Mumbai, India** – The Adani Group has abruptly cancelled a planned $600 million bond offering following criminal and civil charges filed by US authorities alleging a $250 million bribery scheme orchestrated by Gautam Adani and other top executives. The US Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) accuse Adani, along with Sagar Adani and Vneet Jaain, of bribing Indian officials to secure lucrative solar energy contracts and misleading investors.
The indictment sent shockwaves through the market, causing Adani’s US dollar bonds to plummet by as much as 15% in Asian trading. The group cancelled the bond sale hours after pricing, citing the legal developments. Existing Adani Green Energy bonds also plummeted to record lows, trading at 80 cents on the dollar. Shares in Adani Group companies crashed by up to 20% on the Bombay Stock Exchange (BSE), with Adani Green experiencing an 18% drop.
The Adani Group vehemently denies the allegations, calling them baseless and vowing to pursue all legal avenues to challenge the charges. The group insists it operates with the highest ethical standards. While the DOJ stresses that the charges are allegations, and the defendants are presumed innocent until proven guilty, the news adds to the group’s woes following the January 2023 Hindenburg Research report, which accused the conglomerate of stock manipulation and fraud, wiping out $150 billion in market value.
Fund manager Mohit Mirpuri of SGMC Capital noted that while the Adani Group weathered the Hindenburg accusations, these new charges highlight persistent governance and regulatory risks. The developments raise serious concerns about the group’s financial stability and future prospects.
First Piper 