The stocks of Adani Group fell up to 20% this morning after billionaire Gautam Adani, his nephew Sagar Adani and six others faced charges in the US in a mutlibillion-dollar bribery and fraud scheme.
Shares of Adani Energy Solutions were the worst affected as they crashed 20% while those of Adani Green Energy slumped 19%. The Adani Ports and Special Economic Zone were down 15%, Adani Power 14%, Adani Total Gas 15%, Adani Wilmar 10%, Adani Cements plunged 12% and ACC 10%.
The market worth of Adani Group companies dropped to Rs 12.42 lakh crore from Rs 14.28 lakh crore, according to Fortune report.
All the shares of Adani Group companies nosedived soon as Indian stock markets opened for trade. The Nifty 50 index was down 0.75%, while the BSE Sensex was 0.73% lower.
Shares of Australia-listed GQG Partners plunged up to 25% after Adani was charged with fraud in New York. GQG is Adani Enterprises’ fourth largest shareholder, owning about 3.94% of the firm.
GQG has benefited heavily after investing in Adani, whose shares tumbled after a short-seller report in January 2023 by New York’s Hindenburg Research accused the company of fraud.
Recently, the Adani Group has decided not to go ahead with America Dollar Denominated Bond offering and conveyed the same to the stock market in its filing on Thursday. The worth of the offer is $600 million.
The US investigation agencies said that Adani Group, through the financial fraud, violated the Foreign Corrupt Practices Act (FCPA). The FCPA is aimed at preventing companies and individuals from being involved in corrupt practices.
In the wake of the allegations that Adani Group is involved in corruption and bribery, eyeing to invest in Andhra Pradesh during Jagan’s rule, it has to be seen how the YCP boss would handle and react to the issue.
This post was last modified on 21 November 2024 2:24 pm
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