Adani Group shares plunged when the markets opened on Thursday, November 21, 2024 after the US Securities and Exchange Commission (SEC) announced it was pressing charges against Adani Group chairman Gautam Adani, Sagar Adani, and Cyril Cabanes, an executive of Azure Power Global Ltd in a bribery case.
Adani Green Energy Ltd, the main company involved in the case saw its shares plummeting 16.00% or by ₹225.85 to ₹1,185.90 after the market opened.
Meanwhile, Adani Enterprises Ltd, the flagship Adani Group company saw its share fall 10% or by ₹282.00 to reach ₹2,538.20.
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What were the charges by the US SEC against Adani about?
The SEC charged Gautam Adani, Sagar Adani, and Cyril Cabanes, an executive of Azure Power Global Ltd for misleading US investors, alleging a massive bribery scheme with the Indian government.
The US market regulator said the scheme was to secure a commitment of the Indian government buying energy from them at above-market rates that would benefit Adani green and Azure Power.
During the alleged scheme, Adani Green raised more than $750 million from investors and $175 million from US investors, with Azure Power’s stock also being traded on the New York Stock Exchange, the SEC said.
The SEC’s complaint seeks permanent injunctions, civil penalties, and officer and director bars.
“As alleged, Gautam and Sagar Adani 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, and Cyril Cabanes participated in the underlying bribery scheme while serving as director of a US public company,” said Sanjay Wadhwa, Acting Director of the SEC’s Division of Enforcement. “We will continue to vigorously pursue and hold individuals, including senior corporate officers and directors, accountable when they violate our securities laws.”
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How did other Adani Group shares perform as a result?
Adani Power Ltd fell to ₹455, a fall of of 13.18% or 69.10 points.
Adani Ports and Special Economic Zone Ltd saw its shares fall to ₹1,160.15, falling by 10% or 128.90 points.
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