How has the Adani Group responded to the US indictment?

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Adani Group Denies US Charges, Cites Market Capitalisation Loss and Project Repercussions

The Adani Group has vehemently denied charges of bribery and corruption brought forth by the US Department of Justice (DoJ), stating that the allegations are "baseless" and "unfounded." The indictment has led to a significant market capitalisation loss of nearly US$55 billion across its 11 listed companies. The group has also acknowledged substantial repercussions on its international projects and financial standing.
Market Capitalisation Plunge and Stock Volatility

Since the US DoJ indictment, the Adani Group has experienced a severe decline in its market value, amounting to almost US$55 billion across its listed entities. This development triggered a significant sell-off of Adani stocks in Mumbai, leading to multiple trading halts. However, following a statement from the Adani Group, shares in Adani Enterprises and Adani Green saw a surge, indicating a potential market reaction to the company's clarifications.
Clarification on Charges and Founder's Involvement

The Adani Group has clarified that it is "incorrect" to state that its founder, Gautam Adani, or his nephew, Sagar Adani, have been charged with bribery or corruption. The company asserts that officials are "only charged" with securities fraud and wire fraud conspiracy, and it denies all such allegations. The indictment, unsealed in New York, had accused Gautam Adani and subordinates of misleading international investors as part of a bribery scheme to secure government contracts.
International Project Cancellations and Investigations

The indictment has resulted in "significant repercussions" for the Adani Group, including the cancellation of international projects and increased scrutiny from partners and investors. Notably, projects in Kenya, such as the expansion of the electricity network and airport development plans, will no longer involve the Adani Group. Furthermore, Sri Lanka has initiated an investigation into the group's local investments, including a wind power deal and a deep-sea port terminal project.
Previous Allegations and Market Scrutiny

This is not the first time the Adani Group has faced severe market repercussions following allegations. In 2023, the conglomerate weathered a similar stock rout and corporate fraud allegations after Hindenburg Research accused it of "brazen" corporate fraud. At that time, the Adani Group also denied the allegations, calling the report a deliberate attempt to damage its image. The group's rapid expansion into capital-intensive businesses has previously raised concerns about its leverage, with CreditSights warning in 2022 that it was "deeply over-leveraged."

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How has the Adani Group responded to the US indictment?

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