Shares of Adani Group companies took a significant hit when the markets opened on Thursday, November 21, 2024, following the announcement from the U.S. Securities and Exchange Commission (SEC) that it was pressing charges against Chairman Gautam Adani, Sagar Adani, and Azure Power Global Ltd executive Cyril Cabanes in connection with an alleged bribery and fraud scheme.
The SEC’s charges accuse the Adani executives of engaging in a large-scale bribery operation designed to secure favorable energy contracts from the Indian government. These contracts were allegedly intended to ensure the Indian government would purchase energy at above-market rates, benefiting both Adani Green Energy and Azure Power.
Following the news, Adani Group stocks saw a sharp decline, with Adani Green Energy Ltd, the company most directly involved in the case, experiencing a 16% drop, falling by ₹225.85 to ₹1,185.90. Meanwhile, Adani Enterprises Ltd, the group’s flagship company, saw its stock price fall by 10%, dropping ₹282.00 to ₹2,538.20.
The SEC has accused the Adani executives of misleading U.S. investors by falsely claiming that Adani Green had a strong anti-bribery compliance program and that senior management had not engaged in, nor would engage in, any bribery activities. The scheme allegedly raised over $750 million from investors, including $175 million from U.S. investors.
The SEC’s legal action seeks permanent injunctions, civil penalties, and bars against the executives from holding officer or director positions in publicly traded companies.
As the news unfolded, other Adani Group stocks also saw significant declines. Adani Power Ltd dropped 13.18%, losing ₹69.10 to reach ₹455. Adani Ports and Special Economic Zone Ltd fell by 10%, down ₹128.90 to ₹1,160.15. Adani Wilmar Ltd saw a dip of 8.18%, with shares dropping ₹26.75 to ₹300.35, while ACC Ltd and New Delhi Television Ltd also experienced substantial losses of 9.61% and 12.43%, respectively.