Adani group shares surged up to 6% today; here's what triggered the rally

Adani Green Energy clarified today that allegations against Gautam Adani, Sagar Adani, and senior executive Vneet Jaain under the US FCPA by the US Department of Justice are "incorrect."

Shares of Adani Group companies were trading firm and gained up to 6 per cent on the BSE in Wednesday’s intra-day trade after the group company Adani Green Energy clarified today that allegations against Gautam Adani, Sagar Adani, and senior executive Vneet Jaain under the US Foreign Corrupt Practices Act (FCPA) by the US Department of Justice (DoJ) are “incorrect.” However, the company acknowledged that the executives face three other charges, including securities and wire fraud, in the indictment.

 

At 10:12 am; Adani Energy Solutions and Adani Power were up 6 per cent, while, Adani Green Energy, ACC, Adani Enterprises, Adani Total Gas, Adani Wilmar and Adani Ports and Special Economic Zone and Ambuja Cements were up 1 per cent to 4 per cent on the BSE in intra-day trade today. In comparison, the BSE Sensex was down 0.05 per cent at 79,964.

 

In the past one week, the stock price of Adani Green Energy and Adani Energy Solutions tanked 36 per cent and 31 per cent, respectively. Adani Enterprises, the flagship company of the group, slipped 24 per cent, while, Adani Power, Adani Total Gas, Adani Ports, Adani Wilmar and Amuja Cements were down in the range of 10 per cent to 16 per cent.

 

On November 21, Adani Green Energy in an exchange filing said the United States Department of Justice (DoJ) and the United States Securities and Exchange Commission (SEC) issued a criminal indictment and brought a civil complaint, respectively, in the United States District Court for the Eastern District of New York, against our Board members, Gautam Adani and Sagar Adani. The US DOJ has also included our director namely, Vneet Jaain, in such criminal indictment.

 

Post development, two global rating agencies, Moody’s and Fitch, downgraded the outlook for several Adani group companies from “stable” to “negative” on Tuesday, citing escalating legal and governance risks. Fitch also placed certain Adani firms under the “Rating Watch Negative (RWN)” status. CLICK HERE FOR FULL DETAILS

 

Meanwhile, Adani Green Energy on November 27 said the articles circulating in the media state that certain of our directors namely Gautam Adani, Sagar Adani and Vneet Jaain have been charged with violation(s) of the US FCPA in the indictment. Such statements are incorrect. 

 

Gautam Adani, Sagar Adani and Vneet Jaain have not been charged with any violation of the FCPA in the counts set forth in the indictment of the US DOJ or civil complaint of the US SEC, the company said.

 

These directors have been charged on three counts in the criminal indictment namely alleged securities fraud conspiracy, alleged wire fraud conspiracy, and alleged securities fraud, it added.