Adani Group stocks witnessed a sharp decline on Thursday, November 21, 2024, following charges by the US Securities and Exchange Commission (SEC) against Adani Group Chairman Gautam Adani, his son Sagar Adani, and Cyril Cabanes, an executive of Azure Power Global Ltd. The case involves allegations of bribery and fraud totaling $250 million.
The SEC accused the trio of misleading US investors and engaging in a scheme to secure above-market energy purchase rates from the Indian government, benefiting Adani Green Energy and Azure Power. The SEC also claims that Adani Green raised over $750 million globally, including $175 million from US investors, during the alleged bribery period.
As markets opened, Adani Group companies faced a severe selloff:
- Adani Green Energy Ltd shares fell 16%, dropping ₹225.85 to ₹1,185.90.
- Adani Enterprises Ltd, the flagship company, lost 10%, falling ₹282.00 to ₹2,538.20.
- Adani Power Ltd plunged 13.18%, with its stock down to ₹455.
- Adani Ports and SEZ dropped 10%, falling to ₹1,160.15.
- Adani Wilmar Ltd fell 8.18%, reaching ₹300.35.
- ACC Ltd dropped 9.61%, down to ₹1,975.
- NDTV Ltd shares decreased by 12.43%, settling at ₹148.30.
The SEC’s complaint alleges that Gautam and Sagar Adani misled US investors into buying Adani Green bonds by falsely claiming that the company had a strong anti-bribery policy and no involvement in unethical practices. Cyril Cabanes is accused of participating in the bribery scheme while serving as a director of a US-listed company.
Sanjay Wadhwa, Acting Director of the SEC’s Division of Enforcement, stated, “We will continue to pursue and hold individuals, including