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Adani Group shares nosedive after chairman Gautam Adani charged with fraud in New York

Posted: Nov 23, 2024

  • Adani Group's chairman, Gautam Adani, was indicted in New York federal court for bribery and fraud
  • Adani Enterprises ($ADANIE), Adani Green Energy ($ADANIGREEN), Adani Energy, Adani Power ($ADANIPOWER), Adani Port, and Adani Wilmar saw significant drops in stock prices
  • Sagar Adani and Vneet Jaain of Adani Green Energy also indicted
  • Stock prices of the NSE Nifty 50 Index dropped
  • Adani Group faced allegations of accounting fraud in the past
  • Hindenburg Research accused Adani of being the largest corporate con in history
  • Adani Group claimed to always be in compliance with laws
  • Raymond James' Matt Orton believes this will not impact India's market in the long term
  • Adani Group shares plummeted after chairman Gautam Adani was charged with fraud in New York
  • Adani Group accused of paying over $250 million in bribes to Indian government officials for solar energy contracts worth over $2 billion
  • Adani Enterprises dropped 23%, Adani Green Energy fell 18.95%, Adani Energy fell 20%, Adani Power lost 14.48%, Adani Port dropped 20%, Adani Wilmar shed 10%
  • Adani, two executives from Adani Green Energy, and others charged with misleading investors about adherence to antibribery standards
  • Adani Green Energy canceled plan to raise funds through U.S. dollar-denominated bonds
  • Adani may need to rely on domestic funding sources
  • Adani-affiliated stocks could give back gains from the past year
  • Charges also involved former executives and employees from other companies
  • These charges follow previous allegations of accounting fraud and stock manipulation by Hindenburg Research
  • Adani Group refuted previous allegations and stated compliance with all laws
  • These charges do not change India's strong market fundamentals and growth trajectory according to Raymond James
  • Opportunities for long-term investors in India expected to be even better after the dust settles




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