Adani stocks namely Adani Energy Solutions Ltd, Adani Power Ltd, Adani Green Ltd and Adani Enterprises Ltd tumbled up to 20% in Thursday's trade, as a bribery case was filed in the US against Gautam Adani and his nephew Sagar Adani.
Adani Energy Solutions Ltd crashed 20 per cent to hit its lower circuit limit at Rs 697.70. Adani Green Energy Ltd plunged 17.97 per cent at Rs 1,158. Adanis allegedly induced US investors to buy Adani Green bonds through an offering process that misrepresented not only that Adani Green had a robust anti-bribery compliance program but also that the company’s senior management had not and would not pay or promise to pay bribes. Adani Green had earlier raised about $175 million in the US.
Adani Enterprises was locked at its 15 per cent lower circuit limit at Rs 2,397.20. Adani Power shares sank 13.77 per cent at Rs 451.95. Adani Total Gas Ltd plunged 13.49 per cent to Rs 581.55. Adani Ports was locked at its 10 per cent lower circuit limit at Rs 1,160.15. Adani Wilmar also declined 10 per cent. Cement stocks Ambuja Cements and ACC died 15 per cent and 12 per cent, respectively. The market sentiment was weak with the BSE Sensex falling 551.46 points or 0.71 per cent to 77,026.92.
The selloff in Adani shares in fact hit GQG Partners shares in Australia. GQG Partners Inc stock tanked 18 per cent to AUD $2.17 apiece in Australian trading. The investment company is monitoring charges against Gautam Adani and Adani group executives in the bribery case, Reuters quoting sources said.
As per a release by United States Attorney's Office, Gautam Adani and seven other business executives allegedly bribed the Indian government to finance lucrative contracts designed to benefit their businesses. Adani and other defendants, the FBI Assistant Director in Charge suggested, also defrauded investors by raising capital on the basis of false statements about bribery and corruption, while still other defendants allegedly attempted to conceal the bribery conspiracy by obstructing the government’s investigation.
A five-count criminal indictment was unsealed in federal court in Brooklyn charging Gautam S Adani, Sagar R Adani and Vneet S. Jaain, executives of an Indian renewable-energy company, with conspiracies to commit fraud for their roles in a multi-billion-dollar scheme to obtain funds from US investors and global financial institutions on the basis of false and misleading statements.