Shares of Adani Power nosedived by 16% in early trade following severe allegations against Gautam Adani and seven others, who have been indicted in the United States for a multibillion-dollar bribery and fraud scheme. This marks a significant blow to the Adani Group and its affiliated companies.
Key Allegations:
- Bribery Charges: Adani and other defendants are accused of paying over $250 million in bribes to Indian government officials to secure solar energy contracts with profits exceeding $2 billion.
- Capital Misrepresentation: Adani Green Energy Limited executives, including Gautam Adani, his nephew Sagar Adani, and Vneet Jaain, allegedly misled international investors while raising over $3 billion in capital.
- SEC Investigation: The U.S. Securities and Exchange Commission (SEC) has filed civil complaints accusing Adani Green and Azure Power of using bribes to capitalize on government solar energy contracts.
Broader Implications:
- Defendant Profiles: Among those charged are executives from Adani Green Energy, Azure Power Global, and a Canadian institutional investor. None of the defendants are in U.S. custody.
- Legal Jurisdiction: While the alleged activities occurred in India, the charges were filed in the U.S. due to transactions in New York, including false statements linked to bond issuances.
Market Impact:
Adani Power’s shares fell sharply to ₹441, reflecting a 16% decline. This development follows a string of allegations against the Adani Group, including a prior report by Hindenburg Research accusing the group of stock manipulation and accounting fraud.
These new allegations could further dent investor confidence in the Adani Group, which has already faced scrutiny over its corporate practices. The market will closely watch the ongoing legal proceedings and their potential impact on the group’s operations and finances.
