Adani Group stocks added ₹1.7 lakh crore in market capitalisation over the past week, with most companies posting gains of 10% to 30% during the week.
Here’s a look key events from the past 10 days:
November 20: Indictment and Civil Suit
Earlier on November 20, US prosecutors from the Department of Justice (DoJ) charged Gautam Adani and executives of the Adani Group for planning a $265 million bribery scheme. Sagar Adani, the nephew of Gautam Adani, and several associates of the company were also indicted. US prosecutors said the bribery scheme was aimed at securing contracts for solar power projects based in India.
Additionally the Securities and Exchange Commission (SEC) also filed a civil suit against Gautam Adani and his nephew and a third individual.
November 21: Adani Stocks Decline
Indian markets responded to the news on November 21 and reflected negative sentiment as shares of all Adani Group companies closed with losses of up to 23.5%. As much as ₹2.3 lakh crore of total market capitalisation of the Adani Group companies was erased post the indictment. Adani Enterprises Ltd. emerged as the biggest loser among shares of the Adani Group companies with a decline of 22.61%. Adani Green Energy and Adani Ports also closed lower by 18.8% and 13% respectively. Other major Adani Group stocks also declined in the 10-20% range.
November 21: Adani Group Calls Allegations ‘Baseless’
Following the US-Department of Justice indictment the Adani Group denied the allegations and called them ‘baseless’ on November 21. The company stated its commitment to maintain the highest standards of governance in the statement.
“The Adani Group has always upheld and is steadfastly committed to maintaining the highest standards of governance, transparency and regulatory compliance across all jurisdictions of its operations. We assure our stakeholders, partners and employees that we are a law-abiding organisation, fully compliant with all laws” the Adani Group said.
November 25: Total Energies Halts Investments
On Monday, November 25, French multinational Total Energies said in a release that it has halted investments in Adani Group companies following the indictment. The company said that no fresh investments will be made till the accusations against the group’s individuals and their consequences have been clarified.
TotalEnergies has a 19.75% stake in Adani Green Energy as of the September ended quarter.
On November 26, Adani Green Energy infomed the exchanges that it has no new financial commitment under discussion with TotalEnergies and the company’s plan was not likely to have any material impact on its operations or its growth plan.
November 25: GQG Capital backs Adani Group
US firm GQG Partners backed the Adani Group and said that the bribery allegations against the Adani Group will not have a material impact on the company’s business. Rajiv Jain-led GQG Partners also said that its investment thesis on Adani Group companies remained unchanged.
According to reports, GQG’s exposure to Adani Group companies stood at $9.7 billion which was about 6.1% of its total assets before November 20. The GQG group began investing in Adani stocks during the Hindenburg crisis in March 2023. The company currently has investments in six Adani companies, including Adani Enterprises, Adani Ports, and Adani Green Energy. The company also claimed that Adani Group firms are independently managed businesses with distinct clients and revenue streams and that the indictment is of the employees and not the company.
November 27: IHC Dubai extends support
After GQG Capital kept its view on Adani Group companies unchanged, International Holding Co’s (IHC) also shared its view on the groups firms. On November 27, IHC Dubai said that its outlook on investments in the Adani Group remained unchanged.
“Our partnership with the Adani Group reflects our confidence in their contributions to the green energy and sustainability sectors,” IHC said in a statement.
November 27: Adani Group Clarification
On November 27, a week after the US Department of Justice alleged charges against the conglomerate, the Adani Group issued a clarification which stated that the group and its executives, Gautam Adani and Sagar Adani, have not been charged with violations of the US Foreign Corrupt Practices Act (FCPA) over bribery, nor is the civil complaint filed by the US Securities and Exchange Commission (SEC) based on this.
The group said in its clarification that they have been charged on three counts in the criminal indictment-alleged securities fraud conspiracy, wire fraud conspiracy and securities fraud.
In a stock exchange filing, Adani Green said a complaint by US regulator the Securities and Exchange Commission (SEC) sought “an order directing the defendants to pay civil monetary penalties (but) it does not quantify the amount of penalty”.
The civil action launched by the SEC runs in parallel to US federal prosecutors’ indictment against Adani and others.
By Friday’s trading session, Adani Group stocks gained for the third day in a row, with Adani Total Gas, Adani Green Energy and Adani Energy Solutions entering the futures & options segment. Adani Green Energy had its first weekly gain since September, while Adani Energy Solutions gained over 30% for the week.
