India’s Adani Group shares plunge on news of US probe

MUMBAI: Shares of Indian conglomerate Adani Group’s all 10 companies plunged on Monday amid reports that the US government was looking into the conduct of the group.

Gautam Adani.

The stock of the Adani Enterprises Ltd fell nearly 4 per cent in early trade, while Adani Ports and Special Economic Zone Ltd shed nearly 3 per cent, according to reports.

The Adani Wilmar Ltd and Adani Power Ltd were also down over a per cent, while Adani Total Gas Ltd, Adani Energy Solutions Ltd, Adani Green Energy Ltd, and Adani Energy Solutions Ltd were trading 2-3 per cent lower on Monday.

According to Bloomberg, investigators are digging into if Adani Group, or people linked to the conglomerate including Gautam Adani, were involved in paying officials in India for favorable treatment on an energy project. The US attorney’s office for the Eastern district of New York and the Justice department’s fraud unit in Washington are handling the investigation and are also looking at Indian renewable energy company Azure Power Global, the report added. In its clarification, Adani Group told Bloomberg that they are not aware of any investigation against its chairman.

Adani Group’s stocks and bonds saw a massive selloff in January 2023 after US-based short-seller Hindenburg Research issued a damning report that alleged improper governance practices, stock manipulation and the use of tax havens by the group. The Indian company has denied these allegations. — Agencies.