Adani Group Firms' Shares Plunge Amid US Indictments: A Second Consecutive Session of Losses
Thursday, Nov 21, 2024 11:09 pm ET
3min read Adani Group firms' shares continued their downward trend for the second consecutive session on Thursday, November 21, 2024, following the indictment of Gautam Adani, the group's chairman, by the U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC). The allegations of bribery and fraud have shaken investor confidence in the Indian conglomerate, leading to a significant sell-off in its stocks.
The U.S. indictment alleges a $265 million bribery scheme involving Adani subsidiaries Adani Green Energy and Azure Power, as well as other executives, to secure contracts and develop India's largest solar power plant project. The indictment also includes charges of obstructing justice and misleading federal authorities.
Adani Group stocks plummeted on Thursday, with Adani Enterprises, the group's flagship company, falling by over 20%. Adani Green Energy and Adani Ports dropped by 19% and 13%, respectively. GQG Partners, an Australian-listed investment firm and the fourth-largest shareholder of Adani Enterprises, also fell by almost 20% (Source: Fortune).
The indictments have raised concerns about the group's governance and access to capital, leading to a sell-off in Adani Group stocks. On Wednesday, Adani Group companies lost about $28 billion in market value, with Adani Enterprises plunging 23% and other subsidiaries like Adani Ports and Adani Green falling between 9% and 20% (Source: Reuters).
The impact of the indictments has not been limited to Indian equities. Dollar-denominated bonds issued by Adani companies saw record declines. Notes issued by Adani Green Energy in March fell 15 cents, while bonds from Adani Electricity Mumbai due in February 2030 dropped 8.6 cents on the dollar (Source: Bloomberg).
Credit rating agency Moody's called the bribery charges "credit negative," raising concerns about the group's governance and its ability to access capital to meet liquidity requirements. The controversy has also dealt a blow to Gautam Adani's personal wealth, with his fortune declining by $12 billion in a single day (Source: Bloomberg).
Geopolitical factors have also played a role in the market performance of Adani Group firms. Kenya's President William Ruto ordered the cancellation of proposed deals with Adani Group, including a $700 million power transmission line project and a $300 million airport expansion, after U.S. indictments against Gautam Adani. This decision, based on new information from investigative agencies and partner nations, has eroded investor confidence in Adani Group's international operations (Source: The Hindu Business Line).
In India, the main opposition party, Indian National Congress, has called for an investigation into Adani's business dealings, with party leader Rahul Gandhi demanding the billionaire's arrest. These geopolitical developments have exacerbated market concerns about Adani Group's governance and financial health, leading to a second consecutive day of share price declines.
The Adani Group's governance practices have come under scrutiny following recent allegations of bribery and fraud. The impact on investor confidence and market sentiment is evident in the sharp decline of Adani Group firms' shares for the second consecutive session. The U.S. Justice Department's indictment alleges a $265 million bribery scheme to secure contracts, which has eroded investor trust and raised concerns about the group's corporate governance.
The Adani Group's major projects, both in India and overseas, are now under scrutiny. Kenya has cancelled airport and energy deals with the group, while the Adani Group's $600 million dollar bond issue has been cancelled. The group's access to funding, particularly in the US, may be threatened. The indictments have raised concerns about the group's governance and its ability to access capital to meet liquidity requirements, as noted by credit rating agency Moody's.
The recent indictments against Gautam Adani and his group have led to a significant downturn in Adani Group firms' shares, with a combined market capitalization loss of over $28 billion in just two days. This decline has erased about $15 billion from Adani's net worth, according to Bloomberg. The Adani Group's major projects, both in India and overseas, are now under scrutiny. Kenya has cancelled airport and energy deals with the group, while the Adani Group's $600 million dollar bond issue has been cancelled. The group's access to funding, particularly in the US, may be threatened. The indictments have raised concerns about the group's governance and its ability to access capital to meet liquidity requirements, as noted by credit rating agency Moody's.
The controversy has also dealt a blow to Gautam Adani's personal wealth, with his fortune declining by $12 billion in a single day. These developments could have long-term consequences for the company's growth and market value, as investors shy away from Adani Group stocks and borrowing costs potentially rise.
In conclusion, the recent indictments against Gautam Adani and his group have led to a significant downturn in Adani Group firms' shares, with a combined market capitalization loss of over $28 billion in just two days. This decline has erased about $15 billion from Adani's net worth, according to Bloomberg. The Adani Group's major projects, both in India and overseas, are now under scrutiny. Kenya has cancelled airport and energy deals with the group, while the Adani Group's $600 million dollar bond issue has been cancelled. The group's access to funding, particularly in the US, may be threatened. The indictments have raised concerns about the group's governance and its ability to access capital to meet liquidity requirements, as noted by credit rating agency Moody's. The controversy has also dealt a blow to Gautam Adani's personal wealth, with his fortune declining by $12 billion in a single day. These developments could have long-term consequences for the company's growth and market value, as investors shy away from Adani Group stocks and borrowing costs potentially rise.
The U.S. indictment alleges a $265 million bribery scheme involving Adani subsidiaries Adani Green Energy and Azure Power, as well as other executives, to secure contracts and develop India's largest solar power plant project. The indictment also includes charges of obstructing justice and misleading federal authorities.
Adani Group stocks plummeted on Thursday, with Adani Enterprises, the group's flagship company, falling by over 20%. Adani Green Energy and Adani Ports dropped by 19% and 13%, respectively. GQG Partners, an Australian-listed investment firm and the fourth-largest shareholder of Adani Enterprises, also fell by almost 20% (Source: Fortune).
The indictments have raised concerns about the group's governance and access to capital, leading to a sell-off in Adani Group stocks. On Wednesday, Adani Group companies lost about $28 billion in market value, with Adani Enterprises plunging 23% and other subsidiaries like Adani Ports and Adani Green falling between 9% and 20% (Source: Reuters).
The impact of the indictments has not been limited to Indian equities. Dollar-denominated bonds issued by Adani companies saw record declines. Notes issued by Adani Green Energy in March fell 15 cents, while bonds from Adani Electricity Mumbai due in February 2030 dropped 8.6 cents on the dollar (Source: Bloomberg).
Credit rating agency Moody's called the bribery charges "credit negative," raising concerns about the group's governance and its ability to access capital to meet liquidity requirements. The controversy has also dealt a blow to Gautam Adani's personal wealth, with his fortune declining by $12 billion in a single day (Source: Bloomberg).
Geopolitical factors have also played a role in the market performance of Adani Group firms. Kenya's President William Ruto ordered the cancellation of proposed deals with Adani Group, including a $700 million power transmission line project and a $300 million airport expansion, after U.S. indictments against Gautam Adani. This decision, based on new information from investigative agencies and partner nations, has eroded investor confidence in Adani Group's international operations (Source: The Hindu Business Line).
In India, the main opposition party, Indian National Congress, has called for an investigation into Adani's business dealings, with party leader Rahul Gandhi demanding the billionaire's arrest. These geopolitical developments have exacerbated market concerns about Adani Group's governance and financial health, leading to a second consecutive day of share price declines.
The Adani Group's governance practices have come under scrutiny following recent allegations of bribery and fraud. The impact on investor confidence and market sentiment is evident in the sharp decline of Adani Group firms' shares for the second consecutive session. The U.S. Justice Department's indictment alleges a $265 million bribery scheme to secure contracts, which has eroded investor trust and raised concerns about the group's corporate governance.
The Adani Group's major projects, both in India and overseas, are now under scrutiny. Kenya has cancelled airport and energy deals with the group, while the Adani Group's $600 million dollar bond issue has been cancelled. The group's access to funding, particularly in the US, may be threatened. The indictments have raised concerns about the group's governance and its ability to access capital to meet liquidity requirements, as noted by credit rating agency Moody's.
The recent indictments against Gautam Adani and his group have led to a significant downturn in Adani Group firms' shares, with a combined market capitalization loss of over $28 billion in just two days. This decline has erased about $15 billion from Adani's net worth, according to Bloomberg. The Adani Group's major projects, both in India and overseas, are now under scrutiny. Kenya has cancelled airport and energy deals with the group, while the Adani Group's $600 million dollar bond issue has been cancelled. The group's access to funding, particularly in the US, may be threatened. The indictments have raised concerns about the group's governance and its ability to access capital to meet liquidity requirements, as noted by credit rating agency Moody's.
The controversy has also dealt a blow to Gautam Adani's personal wealth, with his fortune declining by $12 billion in a single day. These developments could have long-term consequences for the company's growth and market value, as investors shy away from Adani Group stocks and borrowing costs potentially rise.
In conclusion, the recent indictments against Gautam Adani and his group have led to a significant downturn in Adani Group firms' shares, with a combined market capitalization loss of over $28 billion in just two days. This decline has erased about $15 billion from Adani's net worth, according to Bloomberg. The Adani Group's major projects, both in India and overseas, are now under scrutiny. Kenya has cancelled airport and energy deals with the group, while the Adani Group's $600 million dollar bond issue has been cancelled. The group's access to funding, particularly in the US, may be threatened. The indictments have raised concerns about the group's governance and its ability to access capital to meet liquidity requirements, as noted by credit rating agency Moody's. The controversy has also dealt a blow to Gautam Adani's personal wealth, with his fortune declining by $12 billion in a single day. These developments could have long-term consequences for the company's growth and market value, as investors shy away from Adani Group stocks and borrowing costs potentially rise.
