Adani Group stocks rose on November 27 and extended gains to 10-20 percent, after Adani Green Energy Ltd issued a clarification refuting bribery and corruption charges against founder Gautam Adani and other executives under the US Foreign Corrupt Practices Act (FCPA).
Adani Enterprises stock jumped 11.5 percent to close at Rs 2,397.8, after hitting a 10 percent circuit intraday. Adani Ports and SEZ stock gained 6.3 percent to end the session at Rs 1,199.95 on NSE.
Adani Green Energy and Adani Energy Solutions shares too hit the 10 percent upper circuit, and ended the session at Rs 890 and Rs 660.8. Adani Power shares closed with a gain of 19.5 percent at Rs 523.05.
The rise in Adani stocks came after Adani Green Energy clarified that recent reports alleging bribery and corruption charges under the FCPA were 'incorrect'. The company said in an exchange filing that Gautam Adani, Sagar Adani, and Vneet Jaain are not facing any allegations related to bribery or foreign corruption under the FCPA. Instead, the charges involved alleged securities fraud conspiracy, wire fraud conspiracy, and securities fraud, Adani Green Energy clarified.
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"Such statements are incorrect. Mr Gautam Adani, Mr Sagar Adani, and Mr Vneet Jaain have not been charged with any violation of the FCPA in the counts set forth in the indictment of the US DOJ or civil complaint of the US SEC," the company said, referring to the Department of Justice and the US Securities and Exchange Commission.
The clarification comes amid heightened scrutiny of the Adani Group following criminal and civil charges filed by the US federal prosecutors and the US SEC last week. These charges, which accuse Adani executives of securities fraud and misleading investors, triggered sharp declines in Adani Group stocks earlier.
Adani Group stocks lost Rs 2.2 lakh crore in market capitalisation on November 21, marking one of the steepest single-day declines in its history. The dramatic sell-off in the group stocks came after US prosecutors named Gautam Adani in a $250 million scheme to secure solar energy contracts in India.
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