Adani Group Shares Tumble Amid US SEC Bribery Charges Against Top Executives
Adani Group stocks took a severe hit when markets opened on Thursday, November 21, 2024, following the U.S. Securities and Exchange Commission (SEC) filing charges against Gautam Adani, Sagar Adani, and Cyril Cabanes, an executive of Azure Power Global Ltd. The charges are linked to an alleged bribery and fraud scheme.
The SEC accused the executives of misleading U.S. investors by orchestrating a massive bribery plot to secure Indian government commitments for purchasing energy at above-market rates. This arrangement allegedly benefited Adani Green Energy Ltd and Azure Power Global Ltd, both of which raised significant funds during the period in question.
Key Allegations by the SEC
The SEC claimed that:
- Adani Green Energy raised $750 million, including $175 million from U.S. investors, during the alleged scheme.
- Gautam and Sagar Adani misled investors by falsely claiming that Adani Green maintained a strong anti-bribery compliance program and that its senior management had no involvement in bribery.
- Cyril Cabanes, while serving as a director of Azure Power Global, played a role in facilitating the alleged bribery scheme.
Sanjay Wadhwa, Acting Director of the SEC’s Division of Enforcement, stated:
“We will continue to vigorously pursue and hold individuals, including senior corporate officers and directors, accountable when they violate our securities laws.”
Adani Enterprises Takes a Major Hit
Adani Enterprises Ltd, the flagship company of the group, saw its shares plummet by 19.39%, dropping ₹546.75 to settle at ₹2,273.45 by the day’s opening.
Performance of Other Adani Group Stocks
The ripple effect was felt across the board, with significant declines in several Adani Group companies:
- Adani Power Ltd: Dropped 11.07% to ₹466.10.
- Adani Ports and SEZ Ltd: Fell 12.32% to ₹1,130.30.
- Adani Wilmar Ltd: Declined 10.00% to ₹294.40.
- Adani Total Gas Ltd: Dropped 12.32% to ₹589.45.
- Ambuja Cements Ltd: Decreased 9.83% to ₹495.60.
- ACC Ltd: Fell 6.71% to ₹2,038.40.
- NDTV: Shares fell 7.74% to ₹156.25.
This market rout marks a significant setback for the Adani Group, which has been under increasing scrutiny from regulators and investors worldwide.