Adani Group stocks faced another steep decline on November 22, 2024, following US indictments against Chairman Gautam Adani and other executives. Allegations of bribery and fraud have significantly impacted investor sentiment, leading to a ₹2 lakh crore market cap loss in just two days.
Stock Performance Overview
| Stock | Closing Price (₹) | % Change in 2 Days |
|---|---|---|
| Adani Enterprises | ₹2,182.55 | -22.61% |
| Adani Green Energy | ₹1,146.40 | -28.00% |
| Adani Energy Solutions | ₹697.70 | -20.00% |
| Adani Ports | ₹1,114.70 | -13.53% |
| Adani Total Gas | ₹602.35 | -10.40% |
| Adani Power | ₹476.15 | -9.15% |
Allegations Against Adani Group
US prosecutors allege that Gautam Adani and associates:
- Promised over $250 million in bribes to secure solar energy contracts.
- Used offshore entities to funnel funds, misleading global investors.
- Engaged in fraudulent practices to gain a competitive advantage in renewable energy projects.
Adani Group’s Response: In a statement, the group denied all allegations, reaffirming its commitment to governance and transparency.
Market Impact
- Massive Sell-Off: Several Adani stocks hit their lower circuits as investor confidence waned.
- Global Fallout: Shares of GQG Partners, a significant Adani stakeholder, fell 20% in Australian trading.
- Currency Bonds Decline: The group’s $600 million bond issuance was canceled, and existing bonds saw sharp declines in Asian markets.
Expert Opinions on Recovery
While the allegations have caused short-term volatility, analysts suggest the fundamentals of Adani’s businesses remain strong.
Market View:
- Anshul Jain, Lakshmishree Investment: Expects a recovery once legal matters are resolved.
- Sumeet Bagadia, Choice Broking: Recommends bottom-fishing Adani Ports for long-term gains, with a target of ₹1,250.
Adani Group’s Response
The company strongly denied the allegations, stating:
“The Adani Group upholds the highest standards of governance, transparency, and compliance. The allegations are baseless, and we will pursue all legal remedies.”
Future Outlook
Despite the ongoing turbulence, Adani Group’s diversified portfolio in infrastructure, energy, and logistics provides a strong foundation. However, investor caution is warranted until the legal and financial implications are clearer.
Disclaimer:
This article is for informational purposes only and does not constitute financial or legal advice. Investors should consult professionals before making decisions.
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