November 21, 2024

Adani Group Stocks Plunge Following Bribery Allegations Against Gautam Adani and Executives

Adani Group stocks tumbled significantly on Thursday, November 21, with declines ranging from 10% to 25% in early trading, following bribery charges brought against Gautam Adani and several executives by the U.S. District Court and the Securities & Exchange Commission. The conglomerate has suffered a massive ₹2 lakh crore loss in market capitalization as investor confidence took a hit.

Shares of Adani Enterprises, the group’s flagship company, dropped by 23%, while Adani Ports saw a 20% decline. Other group entities, including Adani Green Energy, Adani Energy Solutions, Adani Total Gas, and Adani Power, also recorded sharp losses between 10% and 20%.

Adani Group StocksDecline
Adani Enterprises-23%
Adani Ports-20%
Adani Green Energy-19%
Adani Energy Solutions-20%
Adani Power-14%
Adani Total Gas-16%
Adani Wilmar-10%

Impact on LIC Holdings

The Life Insurance Corporation of India (LIC), a major domestic institutional investor in Adani Group companies, experienced a staggering ₹12,000 crore decline in the value of its investments during the trading session. LIC holds stakes in seven Adani companies, including Adani Enterprises, Adani Ports, Adani Green Energy, Adani Energy Solutions, Adani Total Gas, ACC, and Ambuja Cements.

Among these, LIC’s holdings in Adani Ports and Adani Enterprises suffered the steepest losses, with declines of ₹5,009.88 crore and ₹3,012.91 crore, respectively. The insurer also saw significant value drops in Ambuja Cements (₹1,207.83 crore), Adani Total Gas (₹807.48 crore), Adani Energy Solutions (₹716.45 crore), Adani Green Energy (₹592.05 crore), and ACC (₹381.66 crore).

Bribery Allegations

U.S. prosecutors have accused Gautam Adani and seven others, including his nephew Sagar Adani, of paying $265 million in bribes to Indian government officials. These payments were allegedly made to secure contracts expected to generate $2 billion in profits over the next two decades. The contracts include projects for developing India’s largest solar power facility.

The allegations and subsequent market reaction underscore growing concerns over governance and transparency in the Adani Group, as investors continue to assess the potential long-term impact of the charges.

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