Tue Nov 26 12:16:11 UTC 2024: ## Adani Green Energy Shares Plummet After TotalEnergies Freezes Investments Amid Corruption Allegations
**Mumbai, India** – Shares of Adani Green Energy Ltd (AGEL) experienced a dramatic 9.67% drop on Monday, closing at Rs 950.60, following an announcement by French energy giant TotalEnergies that it is pausing all new investments in Adani Group companies. The decision comes in response to a US federal indictment alleging corruption involving Adani Group chairman Gautam Adani and his nephew.
TotalEnergies, a 19.75% shareholder in AGEL and a partner in several Adani renewable energy ventures, emphasized that the allegations do not directly target AGEL itself. However, the company stated its commitment to a zero-tolerance policy on corruption and will refrain from further financial contributions until the accusations are resolved. This includes halting new investments in joint ventures like AGEL23, AREL9, and AREL64.
While TotalEnergies stressed its unawareness of the investigation prior to the US announcement and noted that the allegations are against individuals, not the companies directly, the news triggered significant market reaction. Trading volume in AGEL shares on the BSE surged, exceeding the two-week average by a considerable margin. The stock’s decline over the past five trading days totals a steep 36.61%.
The development underscores the ongoing fallout from the US indictment and its impact on Adani Group’s international partnerships and market valuation. The future of TotalEnergies’ involvement in Adani’s renewable energy projects remains uncertain pending the outcome of the investigation.
First Piper 