Adani group stocks gain up to 5% after clarification on US bribery charge

Shares of Adani Group companies, including Adani Green Energy Ltd, Adani Power Ltd, Adani Energy Solutions Ltd, and Adani Enterprises Ltd, saw gains in Wednesday’s early trade.

The gains reached up to 5% after the group clarified that Gautam Adani, Sagar Adani, and senior executive Vneet Jaain are not facing charges under the US Foreign Corrupt Practices Act (FCPA).

ADANI GROUP STOCKS GAIN SHARPLY

Adani Green Energy shares were trading at Rs 933.60, up 3.90% as of 11 AM. Shares of Adani Power Ltd surged 5.16% to Rs 460.25, while Adani Enterprises Ltd gained 3.57% to Rs 2,227.20.

Other Adani group stocks also showed positive momentum. Adani Total Gas Ltd rose 1.78% to Rs 590, Adani Wilmar Ltd increased 0.90% to Rs 292.95, and Adani Ports and Special Economic Zone posted a marginal rise during the same period.

The rally followed a clarification by Adani Green Energy Ltd (AGEL) that dismissed allegations of bribery or corruption charges against key executives, addressing concerns raised by recent media reports.

CLARIFICATION FROM ADANI GREEN ENERGY

In its statement to the stock exchanges, AGEL said, “Mr. Gautam Adani, Mr. Sagar Adani, and Mr. Vneet Jaain have not been charged with any violation of the FCPA in the counts set forth in the indictment of the US Department of Justice (DOJ) or the civil complaint of the US Securities and Exchange Commission (SEC). The charges against them include alleged securities fraud conspiracy, wire fraud conspiracy, and securities fraud.”

The company added that media reports suggesting bribery allegations were incorrect.

Adani stocks recovered ground after a sharp fall in the previous session, which followed a downgrade by global rating agency Moody’s. The agency had revised its outlook for seven Adani Group entities, citing risks related to funding access and increased borrowing costs.

S&P Global Ratings had also pointed out that the allegations in the US could impact the group’s funding capabilities. However, the group’s clarification seems to have eased investor concerns for now.