Indian business giant faces huge losses after US legal action hits markets
Major Indian business group lost $28-billion in market-value after US authorities announced criminal charges. Legal case involves alleged bribes for solar-power contracts and multiple board members
The morning trade on nov-21 showed a huge drop in market-value for multiple companies as US prosecutors revealed their findings. Gautam Adaniʼs business empire lost around $28-billion after accusations of illegal activities hit the markets
Stock prices fell dramatically across the groupʼs companies; with different levels of decline:
- Adani Enterprises dropped 23%
- Adani Green fell about 20%
- Other group firms lost between 9-20% in value
The US authorities claim that Gautam Adani‚ his nephew Sagar Adani and 6 other people paid $265-million in bribes to get contracts for indiaʼs biggest solar-power project (which could bring $2-billion profit over time)
Adani Green made an official statement acknowledging that the US Justice Department filed criminal charges against its board members including Vneet Jaain; the SEC also started a civil case. The company decided to stop its planned US-dollar bond sales due to these events
The market reaction was quick - bond prices went down 3 to 5 cents for Adani Ports during early asian trading. This drop was the biggest since last years short-seller report. The total worth of all 10 listed stocks went from $169.08-billion to $141-billion at morning GMT time
SMC Global Securities expert points out: “This will affect how people see the group and might make borrowing money harder for them“
