share market
On November 21, there was a huge drop in the shares of the Adani Group, when the US prosecutor leveled serious allegations of bribery and fraud against Gautam Adani. Shares of Adani Enterprises, Adani Green Energy and Adani Energy Solutions saw a drop of 10-20 per cent during early trade. Its effect has also been observed in the Indian stock market. Nifty has fallen 187 points to 23,330, while Sensex has weakened 549 points and is trading at 77,028.
Adani Group shares hit lower circuit
Shares of Adani Enterprises fell 10 per cent and closed in the lower circuit at Rs 2,539.35. Prices improved after the Hindenburg Research revelations, but have not yet managed to return to the previous price range. Shares of Adani Green Energy fell 17 per cent to Rs 1,172.5, while shares of Adani Energy Solutions fell 20 per cent to Rs 697.25.
Due to this, the stock fell.
US prosecutors have alleged in a case filed in Brooklyn, New York, that Adani Group paid bribes worth $250 million (Rs 2.1 billion) to win solar energy contracts in India. In this case, Gautam Adani, Sagar R Adani and Vineet S Jain have been accused of misleading American investors and obstructing justice. The indictment also cites efforts to destroy electronic evidence and mislead U.S. agencies, including the FBI.
read this too
There was also a drop in bonds.
Adani Group’s dollar-denominated bonds also saw a big drop. Adani Green Energy’s March bonds fell to 15 cents, a record, while Adani Electricity Mumbai’s February 2030 bonds fell 8.6 cents. This decline is the largest since the financial loss seen in 2023, Hindenburg Research reports.
Will these allegations become a headache for the Adani Group?
The latest controversy has come to light at a time when Adani Group is focusing on reducing debt and stabilizing its financial position. In March 2023, the company made an advance payment of Rs 7,374 crore in equity-backed financing. Apart from this, the group plans to raise $1.5 billion in recent months to finance new projects and reduce debt.
