Business Standard

Adani Group shares trade weak; Total Gas, Ports, Energy slip up to 8%

According to a Bloomberg report, US prosecutors have widened their probe against India's Adani Group to focus on whether the company engaged in bribery

Gautam Adani, Adani

Photo: Bloomberg

SI Reporter Mumbai

Listen to This Article

Shares of Adani group companies were trading weak on Monday, falling up to 8 per cent on the BSE in the intraday trade, on report that the US prosecutors were probing Gautam Adani and his group over potential bribery.

Adani Total Gas, Adani Enterprises, Adani Energy Solutions, Adani Ports and Special Economic Zone, Ambuja Cements, Adani Power, Adani Green Energy, ACC, and Adani Wilmar dropped up to 8 per cent in the intraday trade. At 09:41 AM, these stocks recouped some losses and were trading lower in the range of 2 per cent to 4 per cent. By comparison, the S&P BSE Sensex was down 0.21 per cent at 72,491.

According to a Bloomberg report, US prosecutors have widened their probe against India's Adani Group to focus on whether the company engaged in bribery, and the alleged conduct of the company’s billionaire founder. CLICK HERE FOR FULL REPORT.

On its part, the Adani Group has said that they were not aware of any investigation against the chairman. "As a business group that operates with the highest standards of governance, we are subject to and fully compliant with anti-corruption and anti-bribery laws in India and other countries," Adani Group said in an emailed statement, the Bloomberg reported. CLICK HERE FOR FULL REPORT

That said, in a separate development, Adani Group plans to invest more than Rs 1.2 trillion (about $14 billion) across its portfolio companies that range from ports to energy, airports, commodities, cement and media in fiscal year starting April 1, as it doubles down on its $100 billion investment guidance over the next 7-10 years to grow businesses, PTI reported quoting sources.

In January 2023, Hindenburg Research, a US-based research firm released a report levying various allegations on the Adani group which led to sharp downward spiral in the combined market capitalization of the Adani group thereby constricting the group’s financial flexibility.

Pursuant to the report, in March 2023, the Supreme Court of India directed Securities and Exchange Board of India (Sebi) to conduct regulatory investigations into Adani Group.

Care Ratings had accordingly put the ratings of Adani Enterprises on 'Negative' outlook. The agency, however, now notes that as per the Supreme Court Judgement dated January 04, 2024, 22 out of 24 regulatory investigations have been completed and the balance are likely to be concluded over next 2-3 months.

"While the investigation is not yet concluded, the impact of the outcome on the group does not appear as an issue of concern. However, any material adverse outcome of the investigations impairing the group's financial flexibility shall remain a key rating monitorable," Care Ratings said in its rationale dated March 5, 2024.

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Mar 18 2024 | 10:13 AM IST

Explore News