Adani shares rise; CFO says publicly listed firms not subject to US indictment

Shares under the Adani Group rose on Monday, recovering further from steep losses last week after group CFO Jugeshinder Singh said that none of the conglomerate’s publicly listed companies were subject to US charges of bribery and fraud. 

Adani’s shares had plummeted last Thursday after U.S. authorities indicted Chairman Gautam Adani and seven other individuals, including his nephew Sagar Adani, on charges of bribing government officials and misleading investors. 

The U.S. Securities and Exchange Commission issued summons to Adani over the weekend. 

But Adani shares recovered some ground on Friday, and appeared to have extended this recovery on Monday. Adani Enterprises Ltd (NS:ADEL )- the conglomerate’s flagship firm- rose 2.6%, while Adani Ports and Special Economic Zone Ltd (NS:APSE ) rose 1.6%. 

Adani Energy Solutions Ltd (NS:ADAI ), Adani Total Gas Ltd (NS:ADAG ), Adani Wilmar Ltd (NS:ADAW ), Adani Green Energy Ltd (NS:ADNA ), and Adani Power Ltd (NS:ADAN ) rose between 0.6% and 5% in morning trade. 

The gains also came amid broader increases in Indian stocks, with the Nifty 50 rebounding 1.5% from an over five-month low on Monday.

Adani denied the U.S. criminal charges as “baseless” in a statement issued last week. CFO Singh said the indictment was linked to one contract held by Adani Green Energy that comprised some 10% of its business, and that no other publicly listed firms under the conglomerate were named in the criminal charges. 

U.S. authorities had issued arrest warrants for the Adani Chair, which wiped out billions in market capitalization last week. 

The losses mirror those seen after the release of a damning short-seller report by Hindenburg Research in early-2023, which had accused Adani of fraud and market manipulation.

Source: Investing.com