Adani Group’s Bonds and Shares Plunge Amid Allegations of Bribery and Scrutiny of Billionaire Gautam Adani’s Actions, as reported by Bloomberg on 15th March, Friday.
Reports indicate that US prosecutors have expanded their investigation into the Adani Group, leading to a significant decline in the conglomerate’s dollar bonds and share prices.
The scope of the investigation by the United States into India’s Adani Group has broadened, with a particular focus now on the actions of its founder, Gautam Adani, and possible involvement in bribery, according to a report by Bloomberg News on Friday. Prosecutors are delving into whether individuals associated with Adani Group, including Gautam Adani himself, may have participated in offering incentives to officials in India in exchange for advantageous treatment concerning an energy project, as per sources familiar with the matter cited in the report.
Bonds from various Adani subsidiaries experienced their most considerable drops in several months, reversing previous gains. Allegations suggest that a particular Adani entity may have been involved in bribery in India to secure favorable treatment for an energy project, with billionaire Gautam Adani’s actions also reportedly under scrutiny.
Despite the investigation, the Adani Group denies any knowledge of such probes. On the stock market, Adani Total Gas shares saw the most significant decline, with other Adani-related stocks also trading lower, albeit recovering slightly from earlier losses. The conglomerate continues to grapple with the aftermath of the Hindenburg report from over a year ago.
Despite challenges, a US brokerage firm had previously given Adani Enterprises a positive rating, citing the company’s efforts to address liquidity risks, improve governance, and enhance transparency. The Adani Group remains committed to significant investments across its various sectors in the upcoming fiscal year, aiming to achieve its long-term investment targets.
(With inputs from Bloomberg Report).
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