Shares of Adani Enterprises, Adani Green Energy, and Adani Energy Solutions all plummeted up to 10–20% during trading hours on 21 November after Gautam Adani, the creator of the Adani company, was charged with bribery by US federal authorities.

Adani Enterprises’ stock was down 20%, trapped in the lower circuit at Rs 2,172.50. From the post-Hindenburg lows, the stock has more than doubled, although it has not yet recovered to its previous heights. The shares of Adani Green Energy were down 17% at Rs 1,172.5. Adani Energy Solutions dropped 20% to Rs 697.25, the lower circuit.

The Adani Group is under increased investigation after US authorities accused its founder, Gautam Adani, of taking part in a $250 million (about Rs 2,100 crore) bribery plan to obtain solar energy contracts in India. The indictment, which was issued in Brooklyn, New York, charges Adani, Sagar R. Adani, and Vneet S. Jaain with planning a complex conspiracy that involved breaking federal law and making false statements to US investors.

The accusations also include attempts to thwart the course of justice by destroying electronic evidence and deceiving the FBI, Securities and Exchange Commission (SEC), and Justice Department. Apart from the criminal accusations, the SEC has also brought a civil complaint.

The Adani group’s foreign securities have also been impacted by these accusations, as evidenced by the steep decline in Adani’s dollar-denominated bonds. According to Bloomberg, bonds issued by Adani Electricity Mumbai that were due in February 2030 plunged 8.6 cents on the dollar, while notes issued by Adani Green Energy fell 15 cents, setting a record. This is the biggest decline in the group’s debt instruments since the Hindenburg Research report from 2023, which caused the total value of Adani Group equities and bonds to plummet by more than Rs 12 lakh crore.

The new debate arises at a time when the group has been actively working to stabilise its financial situation by lowering its debt. Concerns about its leverage were addressed in March 2023 when it paid back Rs 7,374 crore in share-backed funding and promised to pay off all of the loans by the end of the month.

Adani Energy Solutions’ $1 billion QIP in August 2024 to pay off debt and invest in power infrastructure, as well as Adani Enterprises’ $500 million share sale in October 2024 to finance new energy projects, build a PVC plant, and pay off airport unit debt, are examples of recent fundraising initiatives. By early 2025, the business also intends to issue dollar bonds under the names Adani Green Energy and Adani Energy Solutions in order to earn at least $1.5 billion, mostly for debt refinance.

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