Thu Nov 21 07:37:14 UTC 2024: ## Adani Group Stocks Plunge After US Bribery Indictment

**Mumbai, India –** Shares in the Adani Group plummeted on Thursday following a US indictment accusing Gautam Adani, the group’s founder, and other executives of a massive bribery scheme. The dramatic fall, impacting multiple Adani companies, marks a significant setback for the conglomerate which has been working to recover from earlier controversies.

Adani Enterprises, the group’s flagship company, hit its lower circuit limit, falling 10%. Other significant declines included an 18% drop for Adani Green Energy and a 20% plunge for Adani Energy Solutions, both hitting their lower circuit breakers. Adani Ports also suffered a 10% loss.

The US Department of Justice (DOJ) indictment alleges a $250 million bribery scheme to secure solar energy contracts in India. The indictment, filed in Brooklyn, New York, also accuses Adani, Sagar R Adani, and Vneet S Jaain of making false statements to US investors, obstructing justice by deleting electronic records, and misleading US regulatory agencies, including the FBI and SEC. The SEC has filed a separate civil lawsuit against the group.

The fallout extended beyond the Indian stock market. Dollar bonds issued by Adani Green Energy and Adani Electricity Mumbai experienced steep declines, marking the most significant drop in the group’s debt securities since the Hindenburg Research report earlier this year.

In response to the charges, Adani Green announced that its subsidiaries have decided to halt planned USD-denominated bond offerings. This news comes as the Adani Group has been actively trying to reduce its debt load through recent fundraising efforts, including a QIP and share sales. The group had planned to raise at least $1.5 billion through further bond issuances. The current situation significantly jeopardizes these plans.

The dramatic stock market reaction underscores the gravity of the allegations and their potential impact on the Adani Group’s future financial stability and ambitious expansion plans. The developments raise serious questions about the group’s corporate governance and its ability to navigate both domestic and international legal challenges.

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