Adani Group's combined market valuation declines by Rs 2.19 lakh crore

NEW DELHI: All ten Adani group listed companies witnessed a massive selloff on Thursday, with the combined market capitalization declining by Rs 2.19 lakh crore, after US prosecutors accused the group of being involved in a $265 million (approximately Rs 2,200 crore) bribery scheme to Indian officials for preferential solar power contract terms.
The Conglomerate's loss was twice what it suffered following the Hindenburg report in January 2023.
Adani Enterprises, the group's flagship company, saw a 22.61 per cent decline, while Adani Energy Solutions dropped 20 per cent. Adani Green Energy fell by 18.80 per cent, Adani Ports decreased 13.53 per cent, Ambuja Cements reduced by 11.98 per cent, and Adani Total Gas declined 10.40 per cent on the BSE.
Additionally, Adani Wilmar fell 9.98 per cent, Adani Power declined 9.15 per cent, ACC 7.29 per cent, and NDTV plunged 0.06 per cent. Several group companies reached their daily lower circuit limits during trading hours.
Meanwhile, the broader market also settled in red, with the BSE Sensex declining 422.59 points (0.54 per cent) to 77,155.79, and the NSE Nifty fell by 168.60 points (0.72 per cent) to 23,349.90.
"While the market is in the midst of a bear hug for the past few weeks, today's fall can also be attributed to the news of Adani group facing bribery charges, which triggered a massive sell-off in its group stocks," said Prashanth Tapse, senior VP (Research) at Mehta Equities.
The charges involve Adani Group allegedly bribing unidentified officials in Andhra Pradesh and Odisha governments to purchase expensive solar power, potentially generating over $2 billion profit across 20 years.
However, the Adani group rejected the bribery allegations made by US prosecutors, stating they were baseless and is compliant with all laws. The group indicated they would pursue all available legal options.
"The allegations made by the US Department of Justice and the US Securities and Exchange Commission against directors of Adani Green are baseless and denied," the group spokesperson stated.