US indictment wipes out over $26bn of Indian conglomerate’s value 

Adani Group has rejected allegations by US prosecutors against its top management, including billionaire Gautam Adani

Adani Group’s stocks have suffered a loss of around $26 billion in market capitalization following allegations of bribery by the US Department of Justice (DOJ) against Gautam Adani, his companies, and executives.

Adani Enterprises stock fell 23% throughout trading sessions on Thursday and Friday, while other entities of the group listed separately on the exchanges, including Adani Ports and Adani Green Energy – the renewable energy arm of the conglomerate which was at the heart of the US indictment – also tumbled. 

Board members of the company, including the conglomerate’s head, Gautam Adani, India’s second-richest man; his nephew Sagar Adani, who heads Adani Green Energy; and its managing director, Vneet S. Jain were among seven people named in the indictment for allegedly bribing Indian officials between 2020 and 2024, to an amount of $265 million, to secure contracts for solar energy projects from regional power distribution companies. 

The US indictment also accused Adani Group of misleading investors by providing false statements to Indian stock exchanges despite being aware of ongoing investigations by the FBI into bribery allegations. The group denied any knowledge of the probes. 

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While Adani Group dismissed the charges as “baseless” and maintained that it operates with the highest standards of integrity and compliance, Adani Green Energy canceled a $600 million bond offering following announcements from the DOJ and the Securities and Exchange Commission.

The losses rival those triggered by last year’s Hindenburg Research report, which accused the company of stock manipulation and accounting fraud. This is the second time Adani Group’s market capitalization has plunged due to allegations of misconduct. 

Last year, US short seller Hindenburg Research released a report claiming that the company was involved in large-scale stock manipulation and accounting fraud, which wiped out $150 billion from the group’s market value. Although the company has made efforts to rebuild investor confidence, the US charges could have larger consequences, according to financial experts. 

“While Adani weathered the Hindenburg allegations, these charges highlight ongoing governance and regulatory risks,” Mohit Mirpuri, a fund manager at Singapore-based SGMC Capital Pte, told Bloomberg. 

The accusations have raised concerns among investors and could limit the conglomerate’s access to public markets for an extended period, according to financial analysts interviewed by the Times of India. Experts note that while the group does not face immediate repayment obligations, its ability to secure public funding could remain constrained until the allegations are resolved. 

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On Thursday, Indian opposition parties called for a joint parliamentary committee investigation into the bribery charges against Adani. The leader of the opposition, Rahul Gandhi, demanded Adani’s immediate arrest and claimed that Prime Minister Narendra Modi was “protecting” him. The Trinamool Congress (TMC) demanded that Modi make a statement on the issue. Sandosh Kumar, the leader of the Communist Party of India, claimed that the US indictment exposed corruption within Modi’s government. 

The ruling Bharatiya Janata Party led by Modi said the law will take its own course, and hit back at the opposition’s suggestion that it was trying to “sensationalize an issue.”