Adani Group Stocks Rebound After US Bribery and Fraud Allegations, Clarification Issued

Adani Group stocks saw a rebound late in Thursday's trading after the company issued a clarification about the allegations from the US Securities and Exchange Commission (SEC).

A spokesperson for the group said, "The allegations made by the US Department of Justice and the US Securities and Exchange Commission against directors of Adani Green are baseless and denied."

The spokesperson also referred to the US Department of Justice's statement, which said, "The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty." They added that the group would pursue "all possible legal recourse."

Six out of 10 listed Adani stocks showed some recovery, but they still remained in negative territory. NDTV, which had fallen 14.38% to a low of Rs 145, saw the biggest recovery. It closed just 3.75% lower at Rs 163.

Cement company ACC dropped 6.82% to Rs 2,036 after hitting a low of Rs 1,867.15 earlier. Ambuja Cements also limited its losses, closing 11.51% down at Rs 486.35 after dipping 17.60% to a low of Rs 452.90.

Adani Ports and Special Economic Zone Ltd, which had fallen by 22.90%, was last seen trading 13.54% lower at Rs 1,114.55. Adani Total Gas Ltd rebounded from an 18.15% decline, closing 11.49% down at Rs 595. Adani Power, which had fallen 17.79%, closed 9.42% lower at Rs 474.75.

However, shares of Adani Energy Solutions, Adani Green Energy, Adani Wilmar, and Adani Enterprises did not recover much, with losses of up to 24%.

The drop in Adani stocks followed the indictment of the group's chairman, Gautam Adani, in the US on charges of bribery and fraud. US authorities alleged that Adani, along with seven other defendants, including his nephew Sagar Adani, had agreed to pay bribes to Indian government officials. This was allegedly done to secure contracts expected to yield $2 billion in profits over 20 years and help develop India’s largest solar power plant project.

These new charges came after a tough period for the Adani Group, which faced controversy in January of the previous year.

At that time, US short-seller Hindenburg Research accused the company of misusing offshore tax havens, a claim that Adani Group denied.