Adani Group market cap plummets Rs 2.2 lakh crore as stocks fall up to 20% on US bribery charges

Adani Ports and Ambuja Cement declined by 13.5 percent and 12 percent, respectively. Adani Total Gas and Adani Wilmar both lost 10 percent

Adani Group's listed firms collectively suffered a Rs 2.2 lakh crore loss in market capitalisation on November 21, as they plummeted up to 20% following charges by US prosecutors accusing Gautam Adani of participating in a scheme to pay over $250 million in bribes to Indian government officials for solar energy contracts.

Adani Enterprises saw the steepest decline, dropping more than 22.6 percent, followed by Adani Energy Solutions and Adani Green Energy, which fell by 20 percent and 18.8 percent, respectively. Adani Ports and Ambuja Cement declined by 13.5 percent and 12 percent, respectively. Adani Total Gas and Adani Wilmar both lost 10 percent, while Adani Power and ACC saw decreases of 9.2 percent and 7.3 percent, respectively. NDTV dropped by 0.7 percent. From its recent 52 week high, the Adani Group's market cap has plunged by nearly Rs 7.5 lakh crore.

According to US prosecutors, Adani and other executives, including Gautam's nephew Sagar R. Adani and Vneet S. Jaain orchestrated an elaborate scheme to bribe Indian officials to secure solar energy contracts worth billions. The US Attorney for the Eastern District of New York, Breon Peace, stated that the group concealed these actions while raising $1.36 billion from American investors between 2020-2023, violating federal laws.

GQG Partners, a major investor in Adani Group stocks, saw its shares plunge 20% to AUD 1.98 on November 21. GQG, led by Rajiv Jain, assured investors it is monitoring the situation closely and reviewing its exposure to the Adani Group. The firm emphasised that over 90% of its clients' assets are invested in non-Adani-related entities, ensuring a diversified portfolio.

Amid heightened scrutiny, Adani Group has been actively reducing its debt to strengthen its financial position. In March 2023, the conglomerate prepaid Rs 7,374 crore in share-backed loans and pledged to eliminate such financing by the month's end.

Recent fundraising efforts include a $1 billion QIP by Adani Energy Solutions in August 2024 for debt reduction and power infrastructure investment, and a $500 million share sale by Adani Enterprises in October 2024 to support new energy projects, a PVC plant, and reduce airport unit debt. Looking ahead, the group plans to raise at least $1.5 billion through dollar bond issuances under Adani Green Energy and Adani Energy Solutions by early 2025, primarily for debt refinancing.