Recently, Adani group stocks declined due to SEC allegations including Adani Group and there was backlash on that news. Then Adani came up with the response to those allegations providing more clarification on the issue.
Price Action of Adani Companies today
After the clarifications, the group company stocks outperformed the nifty index today with Adani Enterprises rising by 10.44 percent, Adani Ports & SEZ increasing by 6.86 percent, Adani Energy Solutions rising by 10 percent, Adani Power increasing by 16 percent, Adani Green Energy by 10 percent, Adani Total Gas rose by 17 percent, Adani Wilmar rose by 8 percent, NDTV increased by 10 percent, Ambuja Cement rise by 4.44 percent and ACC increase by 4 on Wednesday.
SEC Allegations on Adani Group Members
In the US, The Securities and Exchange Commission recently accused certain individuals linked to the Adani Group of market manipulation and fraud. They allege that these individuals inflated Adani Group company share prices to deceive US investors. This accusation has significantly impacted investor confidence in the Adani Group.
The U.S. SEC charged Gautam and Sagar Adani, along with Cyril Cabanes, the executive of Azure Power for allegedly bribing Indian officials to win solar contracts. They have raised over $175 million from U.S. investors and misleading them about anti-corruption practices. The SEC is looking for penalties and injunctions against them.
However, Adani Group denies bribery charges and claims the media misrepresented the case. They argue the charges focus on misleading statements during a bond offering and not on direct bribery. They plan to fight the allegations in court.
Clarifications on the allegations
In response to the SEC’s allegations, the Adani Group has issued clarifications and denials. The group has said that it has always adhered to all applicable laws and regulations. They have maintained that the allegations are baseless and without merit.
The group gave a clarification saying that three directors of the Adani Group Mr. Gautam Adani, Mr. Sagar Adani, and Mr. Vneet Jaain were charged with breaking the U.S. Foreign Corrupt Practices Act (FCPA) which is not true. They have not been charged under the FCPA, which deals with illegal payments to foreign officials to influence business decisions. Instead, the charges against them in the U.S. legal system are about other issues which are Securities fraud conspiracy, Wire fraud conspiracy, and Securities fraud.
Kenya Deal dropped on allegations
On US allegation, Kenya has cancelled two deals with the Adani Group, valued at around $2.6 billion. President William Ruto announced the termination during a state address, citing new information from investigative agencies. The deal included a nearly $2 billion airport procurement and a $736 million energy partnership.
Adani Group Companies Promoter Shareholding
Most of the Adani group companies have a higher promoter holding. As of September 2024, Adani Enterprises has a promoter holding of 74.89 percent, Adani Ports & SEZ – 65.89 percent, Adani Energy Solutions – 69.94 percent, Adani Power – 74.96 percent, Adani Green Energy – 60.93 percent, Adani Total Gas – 74.80 percent, Adani Wilmar – 87.88 percent, NDTV – 64.71 percent, Ambuja Cement – 67.57 percent and ACC – 56.69 percent.
Written by Santhosh S
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