Shares in billionaire Gautam Adani’s conglomerate saw a partial recovery on Friday (November 22, 2024), following a sharp sell-off triggered by U.S. charges alleging the tycoon paid over $250 million in bribes to secure lucrative government contracts.
Also read: Gautam Adani U.S. indictment LIVE
The accusations, detailed in a New York indictment released on Wednesday (November 20, 2024), claim that Adani and his associates deliberately misled global investors as part of the alleged bribery scheme.
On the Bombay Stock Exchange (BSE), several Adani Group stocks rebounded: Ambuja Cements gained 3.50%, ACC rose 3.17%, Adani Enterprises advanced 2.16%, Adani Ports increased 2.05%, Adani Total Gas climbed 1.18%, and NDTV edged up 0.65%.
However, some stocks continued to face losses. Adani Green Energy plunged 8.20%, Adani Energy Solutions dropped 6.92%, Adani Power declined 3.23%, and Adani Wilmar slipped 0.73%.
Thursday’s heavy sell-off of Adani stocks had triggered multiple trading halts. Despite Friday’s gains, Adani Enterprises has lost more than 20% of its market capitalization since the indictment’s release.
Meanwhile, the Adani Group responded strongly to the indictment on Thursday (November 21, 2024), rejecting the allegations against its directors as “baseless” and announcing plans to pursue “all possible legal remedies.”
This latest turmoil adds to the conglomerate’s challenges, following a $150 billion market value loss in 2023 after a report by short-seller Hindenburg Research accused the group of “brazen” corporate fraud.
The report alleged the group engaged in a “stock manipulation and accounting fraud scheme” spanning decades. It also criticized perceived “government leniency,” claiming it had deterred investors, journalists, and politicians from scrutinizing the company’s activities.
Adani Group denied Hindenburg’s findings, calling the report a “deliberate attempt” to harm its reputation for the benefit of short-sellers.
Adani Enterprises
Adani Enterprises Limited (AEL) is a multinational publicly-listed holding company and a part of Adani Group. Through its various subsidiaries, Adani Enterprises is involved in edible oils and staple foods, airport operations, solar PV manufacturing, road infrastructure, among several other sectors.
Adani Green Energy
Adani Green Energy Limited is one of the largest renewable companies in India, with a current project portfolio of 20,434 MW. The company operates Kamuthi Solar Power Project, one of the largest solar photovoltaic plants in the world.
Adani Power Limited
Adani Power Limited, a part of the diversified Adani Group, is the largest private thermal power producer in India. APL possesses a power generation capacity of 15,250 MW comprising thermal power plants in Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, Madhya Pradesh, and Jharkhand, and a 40 MW solar power project in Gujarat.
Adani Total Gas
A joint venture between Adani Energy Solutions (37.4%) and UK’s Total Energies formed in 2005, Adani Total Gas Limited is among the four biggest distributors of municipal gas in India. It operates in 34 geographical areas and another 19 through a joint venture with Indian Oil. It also focuses on CNG, biogas, and EV mobility.
Adani Transmission
Headquartered in Ahmedabad, Adani transmission is one of India’s largest private sector electric power transmission companies.
Adani Wilmar
A multinational FMCG joint venture between Adani Enterprises (44%) and Singapore’s Wilmar International (44%) formed in 1999. It deals in the processing and sale of a variety of edible oils, flour, rice and more through brands like Fortune Foods which is also exported to the Middle East, South-East Asia, and Africa. Recently, Adani Enterprises cancelled a demerger of its stake in the venture until the venture meets public shareholding norms first.
Adani Ports and Special Economic Zones
Adani Ports and Special Economic Zone Limited (APSEZ) is the largest commercial ports operator in India accounting for nearly one-fourth of the cargo movement in the country. Its presence across 13 domestic ports in seven maritime states of Gujarat, Maharashtra, Goa, Kerala, Andhra Pradesh, Tamil Nadu and Odisha.
ACC
Formerly known as The Associated Cement Companies Limited, it was a merger of eleven cement companies — belonging to industrialists like JRD Tata, Ambala Sarabhai and so on — into a single entity in 1936. The management control of the company was taken over by Swiss cement manufacturer Holcim Group in 2004. In 2022, Adani Group acquired Holcim’s stake in ACC.
Ambuja Cements
Formerly known as Gujarat Ambuja Cement Limited, it is a cement manufacturing formed in 1983. It entered into a strategic partnership with Holcim Group in 2006, which then had a controlling stake of 61.62% in Ambuja from 2010 to 2022. When Holcim left the Indian market, Adani Group acquired it’s stake.
NDTV
A broadcast and digital news network in India founded by Prannoy Roy and Radhika Roy in 1983. Adani Group acquired a 29.18% stake in NDTV by buying a company backed by the television network’s founder. Thereafter, it made an open offer to acquire stock from public shareholders, which led to an increase of 8.26% shareholding.
On December 2023, Prannoy Roy and Radhika Roy announced to sell 27.26% out of their remaining 32.26% shareholding in NDTV to the Adani Group, leading to an overall 64.71% stake.
Share market data from The Hindu Businessline
Published – November 21, 2024 04:12 pm IST