Adani Group’s listed companies collectively lost Rs 2.2 lakh crore in market value on November 21, with shares plunging as much as 20% following bribery charges filed by US prosecutors against Gautam Adani. The allegations accuse him of being involved in a scheme to pay over $250 million in bribes to Indian officials in exchange for solar energy contracts. Stocks of Adani Ports, Adani Energy Solutions, Adani Green Energy, Adani Enterprises, Adani Total Gas, and Ambuja Cements saw drops of up to 20%, while Adani Power and ACC fell by 14% and 12%, respectively. Adani Wilmar and NDTV also dropped by 10% each. The Adani Group’s market capitalization has now fallen by nearly Rs 7.5 lakh crore from its 52-week high.
US prosecutors allege that Gautam Adani, along with executives such as his nephew Sagar R. Adani and Vneet S. Jaain, orchestrated a complex bribery operation to secure billions of dollars in solar energy contracts. The US Attorney for the Eastern District of New York, Breon Peace, noted that these actions were concealed while the group raised $1.36 billion from American investors between 2020 and 2023, violating federal laws.
Just hours before these charges came to light, Adani had raised an additional $600 million through green dollar bonds from US investors. GQG Partners, a significant investor in Adani Group stocks, saw a 20% drop in its shares to AUD 1.98 on November 21. GQG, led by Rajiv Jain, assured investors that it is closely monitoring the situation and reviewing its exposure to the Adani Group, while emphasizing that over 90% of its clients’ assets are invested in non-Adani-related assets, ensuring a well-diversified portfolio.
