Adani Group shares extended their losses, falling another 10%; Kenya cancels $700 million deal – Market News

Adani Group shares tumbled another 10% after the conglomerate faced significant pressure on Thursday and witnessed a sharp 23% decline as controversies surrounding the group intensified. Key developments include Kenya’s decision to terminate major contracts with Adani and US prosecutors have accused the conglomerate of bribery.

Adani Group Share Performance

Kenya cancels key contract with Adani Group

Kenyan President William Ruto has announced the immediate cancellation of a procurement process for the expansion of Nairobi’s main airport. Adani Group. In a national address, Ruto also ordered the termination of a $700 million project involving Adani Group’s unit to build power transmission lines.

“I have directed agencies within the Ministry of Transport and the Ministry of Energy and Petroleum to immediately cancel the ongoing procurement,” Ruto said, citing “new information provided by research institutions and partner countries.” he said.

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Adani Energy Solutions recently signed a 30-year, $736 million public-private partnership with the Kenya Electricity Transmission Company in October. The contract was suspended by a Kenyan court the same month.

US Prosecutors Accuse Adani Group of Bribery Allegations

Adding to the challenges facing Adani Group, US prosecutors have filed criminal charges against the group, accusing it of conspiring with executives of a former New York-registered company for a $265 million bribery scheme involving Indian officials to expand its solar business.

While Adani Group has vehemently denied these allegations, calling them “baseless”, Indian government officials are yet to comment on the matter.

Share Value Falls Across Adani Group Companies

The news triggered a significant sell-off in Adani shares, with the total market capitalization of the ten listed Adani Group companies falling from Rs 14.24 lakh crore on Tuesday to Rs 11.91 lakh crore on Thursday. This resulted in a loss of around 2.32 lakh crore rupees to investors in early trade.

Most Adani Group shares fell sharply, with their values ​​falling between 10% and 20%. The top five companies in the group (Adani Enterprises, Adani Wilmar, Adani Ports and SEZ, Adani Green Energy and Adani Total Gas) were the hardest hit, losing a combined market capitalization of Rs 1.67 lakh crore.

The total market capitalization, which was 9.43 lakh crore rupees on November 19, has now fallen to 7.77 lakh crore rupees.

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