Adani Enterprises, Adani Green Energy, Adani Power: Adani shares in focus after Thursday’s sell-off

Adani group stocks Adani Enterprises Ltd., Adani Green Energy Ltd.Adani Energy Solutions Ltd. And Adani Power Ltd. It will be in the spotlight on Friday morning after falling as much as 23 percent in the previous session.

Adani shares fell yesterday as Adani group Chairman Gautam Adani lost his notional fortune of $12.1 billion, according to Forbes, after US prosecutors charged Adani and his nephew Sagar Adani in connection with a $250 million bribery scheme they said was hidden from US investors. fell. funds. Following this, according to Reuters, an arrest warrant was issued for Gautam Adani, Adani Green Energy halted a planned $600 million bond issuance in US dollar denominated bonds, and Adani Energy Solutions reportedly lost a $736 million public-private partnership contract in Kenya.

GQG Partners, one of the Adani group investors and whose shares fell by 19.32 percent in the previous session, stated that it was following the accusations brought by the US Attorney General’s Office for the Eastern District of New York and the US Securities and Exchange Commission, adding: “Our team is examining the emerging details and “It determines what actions are appropriate for our portfolios,” he said.

Following this, GQG Partners shares rose 7.5 per cent in Australian trading earlier today. To recall, GQG was the first major investor in Adani group shares after the scathing report by US-based short seller Hindenburg Research in January 2023.

Meanwhile, there are also concerns about the Adani group’s ability to raise funds; Moody’s Ratings suggests it will look at Adani Group’s governance practices when assessing its ability to access capital in the wake of bribery accusations. It was stated that the fact that the chairman of the group and other senior officials were accused of bribery was negative for the group companies.

A senior SEBI official told Informist that market regulator SEBI may consider taking action on the US federal court’s indictment of Gautam Adani and some other Adani Group officials only if cooperation is sought under the bilateral inter-regulator memorandum of understanding with the US. Securities and Exchange Commission.

Adani group rejected the accusations, which it described as baseless, and stated that the US Department of Justice statement claimed that the charges in the indictment were allegations and that the defendants would be presumed innocent unless proven guilty. The group said it would pursue all possible legal remedies.

Analysts noted that U.S. law generally allows settlements in bribery cases through Non-Prosecution Agreements (NPAs) or Deferred Prosecution Agreements (DPAs). They said companies could resolve the charges by paying fines, admitting some wrongdoing and improving compliance practices.

“Notable peers such as Siemens ($800 million) and Ericsson ($1 billion) show that Adani may seek a solution to limit reputational and financial losses,” said Narinder Wadhwa, Managing Director of SKI Capital.

US markets closed the night with a 0.5-1 percent increase. Asian markets were trading mixed.