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Adani group’s combined market capitalization erodes by INR 2.45 lakh crore, Adani Enterprises sheds 23%

Adani group’s combined market capitalization erodes by INR 2.45 lakh crore, Adani Enterprises sheds 23%

  • The combined market capitalization of the Adani Group companies fell by over INR 2.45 lakh crore.
  • This comes amid a US investigation into Gautam Adani on an alleged bribery charge.
  • Adani was indicted for its role in an alleged scheme to pay a $250 million bribe to Indian officials.

Adani Group shares struggled in morning trading on Thursday, with the combined market valuation of all listed firms eroded by £2.45m, billionaire Gautam Adani was accused by US prosecutors.

Adani was indicted for its role in an alleged years-long scheme to pay $250 million in bribes to Indian officials in exchange for favorable terms on solar power contracts.

The group’s flagship Adani Enterprises stock fell 22.99%, Adani Ports fell 20%, Adani Energy Solutions fell 20%, Adani Green Energy fell 19.53% and Adani Total Gas fell with 18.14% on BVB.

Shares of Adani Power fell 17.79%, Ambuja Cements cracked 17.59%, ACC fell 14.54%, NDTV fell 14.37% and Adani Wilmar fell 10%.

Some of the group’s firms also hit their lowest trading limit or lower circuit for the day.

The combined market capitalization (mcap) of all ten listed group firms eroded by ₹ 2,45,016.51 crore during morning trade.

In the equity market, the benchmark BSE Sensex traded 536.89 points lower at 77,041.49 and the NSE Nifty was down 186.75 points at 23,331.75.

US prosecutors charged Adani, 62, his nephew Sagar and other defendants with paying more than $250 million in bribes between 2020 and 2024 to Indian government officials to win solar power contracts under conditions that could bring a profit of more than 2 billion dollars.

This, they claimed, was hidden from American banks and investors from whom the Adani group raised billions of dollars for the project.

The complaint accuses them of violating anti-fraud provisions of the federal securities laws and seeks permanent injunctions, civil penalties and bars for officers and directors.

US law allows prosecution of foreign corruption allegations if they involve certain ties to US investors or markets.

Adani Group did not immediately respond to requests for comment.

“The defendants orchestrated an elaborate scheme to bribe Indian government officials to secure contracts worth billions of dollars,” said Breon Peace, the U.S. Attorney for the Eastern District of New York, who brought the case, in – a statement.

Adani, chairman of the Adani Group, his nephew Sagar R Adani, who is chief executive of the conglomerate’s renewable energy arm Adani Green Energy Ltd, and its former managing director Vneet Jaain have been charged with securities fraud, conspiracy to commit securities fraud. and wire fraud conspiracy.

The Justice Department alleged that on several occasions Adani met personally with an Indian government official to promote the bribery scheme, and the defendants had in-person meetings with each other to discuss aspects of its execution.

With contributions from agencies.

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