Shares of Adani Group companies suffered steep losses on Thursday, November 21, following the unsealing of bribery charges against Gautam Adani, his nephew Sagar Adani, and other executives by a U.S. District Court and the Securities and Exchange Commission (SEC). The allegations, centered around a $265 million bribery scheme to secure solar energy contracts, triggered a massive sell-off, wiping out ₹2 lakh crore in market capitalization.

Market Reaction

Adani Group stocks nosedived across the board during early trading:

• Adani Enterprises: Down 20% to ₹2,172.50 from the previous close of ₹2,821.50.
• Adani Ports: Fell 15% to ₹1,031.70 from ₹1,289.65.
• Adani Green Energy: Declined 18% to ₹1,136.55 from ₹1,412.70.
• Adani Power: Lost nearly 14%, trading at ₹451.95 from ₹524.10.
• Adani Energy Solutions: Hit its lower circuit limit at ₹697.70, down 20%.
• Adani Total Gas: Plunged 13.49% to ₹581.55.
• Adani Wilmar: Dropped 10%.
• Cement subsidiaries Ambuja Cements and ACC fell by 15% and 12%, respectively.

The steep declines dragged down Indian benchmark indices:

• Sensex: Fell 551.46 points or 0.71% to 77,026.92.
• Nifty: Dropped 179 points, reflecting weakened market sentiment.

Impact Beyond India

The sell-off also hit GQG Partners, a major investor in the Adani Group. Shares of GQG tanked 18% in Australian trading, trading at AUD $2.17 apiece. GQG Partners is reportedly monitoring the developments closely, according to sources quoted by Reuters.

Details of the Allegations

The U.S. indictment accuses Gautam Adani, Sagar Adani, and others of paying $265 million in bribes to Indian officials to secure lucrative solar energy contracts. Key allegations include:

• Misleading Investors: Adani Green Energy allegedly misrepresented its anti-bribery compliance measures during bond offerings.
• Fraudulent Fundraising: The group raised over $3 billion in loans and bonds while concealing the bribery scheme.
• Incriminating Communication: Gautam Adani was referred to by code names such as “SAG,” “Mr. A,” and “Numero Uno” in internal communications.

The SEC has charged Gautam Adani and others with violating U.S. securities laws, seeking penalties, permanent injunctions, and officer/director bans.

Adani Group's Response and Fallout

Adani Green Energy has called off a U.S. dollar-denominated bond sale following the allegations. The Adani Group has not yet issued a formal response to the charges. India’s embassy in Washington also refrained from commenting.

The developments mark another major blow for the conglomerate, which faced significant losses last year after allegations of financial mismanagement surfaced in a report by Hindenburg Research.

A Steep Decline

This latest controversy adds to the challenges facing the Adani Group, with market confidence shaken and investors awaiting clarity. As investigations continue in the U.S., the fallout could further affect the group's financial stability and global reputation.