Adani Group Shares | Highlights: Adani Green Energy stock ends 7% lower; Adani Enterprises, Adani Energy Solutions down 4%

• Adani Green Energy (-7.06%)
• Adani Energy Solutions (-3.69%)
• Adani Enterprises (-4.99%)
• Adani Ports & SEZ (-3.28%)
• Adani Power (-2.16%)
• Adani Wilmar (-2.22%)
• Adani Total Gas (-3.65%)
• ACC (-1.43%)
• Ambuja Cement (-2.39%)
• NDTV (-1.29%)

(NSE data as at 3.10 pm)

Former Andhra Pradesh Energy Minister and Janasena leader B Srinivasa Reddy on Monday said that he had no knowledge of the erstwhile YSRCP regime initiating a deal with the Solar Energy Corporation of India (SECI), which is now embroiled in an alleged international bribery scandal.

Business tycoon and Adani Group chairman Gautam Adani has been charged by the US Department of Justice over his role in an alleged years-long scheme to pay USD 250 million bribe to the Indian officials in exchange for favourable terms for solar power contracts, an allegation refuted by the Indian conglomerate.

The previous YSRCP regime in Andhra Pradesh is embroiled in this alleged scam with claims that government officials received bribes from the Adani Group.

• Adani Green Energy (-5.68%)
• Adani Energy Solutions (-3.39%)
• Adani Enterprises (-3.52%)
• Adani Ports & SEZ (-2.87%)
• Adani Power (-0.97%)
• Adani Wilmar (-1.92%)
• Adani Total Gas (-2.56%)
• ACC (-1.21%)
• Ambuja Cement (-1.89%)
• NDTV (-0.99%)

(NSE data as at 2.40 pm)

Andhra Pradesh state is reviewing government files and will explore if it is possible to cancel a power supply contract linked to the Adani Group, whose billionaire founder has been indicted in the United States, a top official told Reuters.

U.S. authorities have charged Gautam Adani and seven others with agreeing to pay bribes of $265 million to unnamed Indian government officials to obtain solar power-supply contracts in Odisha, Tamil Nadu, Chhattisgarh, Andhra Pradesh and the federal territory of Jammu and Kashmir, between 2021 and 2022.

Most of the alleged bribes - $228 million - were paid to a government official to get Andhra Pradesh’s state electricity distribution companies to agree to purchase power, stated the U.S. indictment. Adani has said the allegations are baseless.

Andhra Pradesh’s state government was “digging into all the internal files” from the previous administration, under which the alleged misconduct took place, state Finance Minister Payyavula Keshav told Reuters on Monday.

“We will also examine what can be done next, like is there a possibility to cancel the contract ... state government is looking into this issue closely,” Keshav said.

A spokesperson for the Adani Group did not immediately respond to a request for comment outside regular business hours.

The previous Andhra Pradesh ruling party, YSR Congress Party, last week denied any wrongdoing.

The U.S. indictment document said that following payment of alleged bribes to Indian officials, Andhra Pradesh’s electricity distribution companies entered into a power supply agreement to purchase “approximately seven gigawatts of solar power - by far the largest amount of any Indian state or region.”

The U.S. charges are the biggest setback for billionaire Adani, whose company shares and bonds have fallen sharply since the indictment.

French oil major TotalEnergies, which has a 20% stake in Adani Green, halted further investment into the Adani Group on Monday. 

Reuters

• Adani Green Energy (-6.86%)
• Adani Energy Solutions (-4.01%)
• Adani Enterprises (-4.43%)
• Adani Ports & SEZ (-3.19%)
• Adani Power (-2.34%)
• Adani Wilmar (-1.93%)
• Adani Total Gas (-2.23%)
• ACC (-1.17%)
• Ambuja Cement (-1.09%)
• NDTV (-1.59%)

(NSE data as at 1.20 pm)

(NSE data as at 1.04 pm)

Adani Green Energy on Tuesday clarified media reports suggesting an impact on its operations following a statement released by TotalEnergies regarding its investments in the Adani Group.

In a regulatory filing with the stock exchanges, the company emphasized that there is no new financial commitment under discussion with TotalEnergies.

The clarification comes after media reports surfaced citing a press release titled ‘TotalEnergies’ Statement on its Investments related to Adani Group in India’, published on TotalEnergies’ official website on November 25, 2024.

The reports speculated about a potential impact on Adani Green Energy following TotalEnergies’ decision to halt fresh financial contributions to projects in India.

In its statement, Adani Green Energy said, “We wish to clarify that there is no new financial commitment under discussion with TotalEnergies. Hence, the Press Release will not have any material impact on the Company’s operations or its growth plan. Accordingly, there is no material impact of the Media Report and the Press Release on the Company at this stage”

The company also reaffirmed that it had provided an update earlier on Tuesday morning to address these concerns. The statement further highlighted that both the media report and the press release issued by TotalEnergies would not affect Adani Green Energy’s current operations or future plans.

The company assured stakeholders that its business strategy remains on track and unaffected by the developments.

ANI

Some nations and investors have either scrapped deals or halted investments in the Adani Group, after the United States indicted its billionaire chairman Gautam Adani for alleged bribery and fraud to win contracts for a group company, Adani Green Energy.

Adani Group has denied all the accusations as “baseless”, but its 10 listed entities have lost about $33 billion in market value since the indictment, with Adani Green the hardest hit, losing about $9.7 billion in market value.

Here are key details of the conglomerate’s stalled deals:

** French oil major TotalEnergies will not make any more investments in the Adani Group, saying that it was not informed of the U.S. bribery charges against Gautam Adani.

Total has a 20% stake in Adani Green Energy, putting its financial exposure in Adani firms at between $4 billion and $5 billion, Bernstein Research estimates.

Shares of Adani Green Energy plunged more than 11% after TotalEnergies’ statement, while those of Adani Total Gas , in which Total holds 37.4%, closed down 1.4%.

** The U.S. International Development Finance Corp is reviewing the impact of the indictment against Gautam Adani on the agency’s plan to lend $550 million for a port development project in Sri Lanka partly owned by Adani Group.

Last November, the agency said it would provide financing for the port terminal project in the key city of Colombo.

** Sri Lanka is studying the accusations against Adani Group and will consider all aspects of its projects in the island nation. The government is taking the concerns seriously but has made no final decision yet.

** Kenya has canceled a procurement process of more than $2 billion that was expected to give control of its main airport to the Adani Group. The deal was to add a second runway at the Jomo Kenyatta international airport and upgrade the passenger terminal in exchange for a 30-year lease.

Kenya also scrapped a separate 30-year, $736-million public-private partnership, signed by Adani Energy Solutions with its energy ministry in October.

** Bangladesh has set up a committee to investigate its power generation contracts signed during the tenure of former prime minister Sheikh Hasina, one of them with Adani Power . The committee has urged the interim government to hire a global legal firm to ensure thorough and transparent vetting of the deals.

** India’s southern state of Andhra Pradesh state is weighing the possibility of canceling a power supply contract linked to the Adani Group, a top official told Reuters, after the U.S. bribery indictments.

The indictment report said bribes of more than $265 million were paid to Indian government officials to obtain solar power-supply contracts in several states, with Andhra Pradesh receiving most of the money, about $228 million. 

Reuters

• Adani Green Energy (-7.04%)
• Adani Energy Solutions (-3.91%)
• Adani Enterprises (-3.77%)
• Adani Ports & SEZ (-3.23%)
• Adani Power (-1.98%)
• Adani Wilmar (-1.87%)
• Adani Total Gas (-1.78%)
• ACC (-1.17%)
• Ambuja Cement (-0.76%)
• NDTV (-1.24%)

(NSE data as at 12.45 pm)

Track bl’s Telecom stocks live here

(NSE data as at 12.05 pm)

In our article published on Sunday ‘What GQG does will matter more for Adani stocks than what US courts do’ we had noted why a strong statement from GQG Capital is what was required to provide some support or a floor for Adani stocks.

Now, a memo sent by GQG to its clients on November 21 has come to light. But parsing through the five-page document, one gets a feeling GQG is beginning to feel some jitters or at least its confidence may be drooping somewhat.

At the start of the year, Rajiv Jain of GQG was sitting high on around $4 billion in profits from his investments in Adani Group stocks. His talks then reflected a lot of confidence with his unconventional investments in 2023 having appeared to have paid off handsomely and that too in a very short time. As compared to the statements then, this memo stops with more sober statement – ‘our investments in Adani as of November 21 have had positive returns in aggregate for our portfolios.’ Connecting the dots in the memo, one can infer profits from investments are likely to have declined by at least $1.7-2 billion due to the recent crash. The margins of safety for GQG have reduced.

bl Research Bureau |Read here

• Adani Green Energy (-6.45%)
• Adani Energy Solutions (-4.14%)
• Adani Enterprises (-2.53%)
• Adani Ports & SEZ (-2.19%)
• Adani Wilmar (-1.82%)
• Adani Power (-1.35%)
• Adani Total Gas (-1.17%)
• ACC (-0.81%)
• Ambuja Cement (-0.79%)
• NDTV (-0.82%)

(NSE data as at 11.20 am)

Fitch Ratings has placed some Adani Group companies and securities issued by them on rating watch negative and revised the outlook on some to negative from stable.

It has put Adani Ports and Special Economic Zone’s long-term foreign-currency IDR of ‘BBB-’ and the ‘BBB-’ rating on its US dollar senior unsecured bonds on rating watch negative as also the the ‘BB+’ rating on North Queensland Export Terminal Pty’’s Australian dollar senior secured bonds, and the ‘BB+’ rating on Mumbai International Airport’s US dollar senior secured bonds.

bl Mumbai Bureau |Read here

• Adani Green Energy (-5.63%)
• Adani Energy Solutions (-3.87%)
• Adani Enterprises (-1.91%)
• Adani Total Gas (-1.74%)
• Adani Power (-1.49%)
• Adani Ports & SEZ (-1.26%)
• Adani Wilmar (-1.56%)
• Ambuja Cement (-0.51%)
• ACC (-0.50%)
• NDTV (-0.58%)

(NSE data as at 9.50 am)

The USD 265 million bribery charge in the US against Gautam Adani raises the issue of extraterritorial application of American laws since the Indian tycoon and others involved in the case do not live here, an Indian-American attorney has said.

“While our domestic laws remain the same, a preliminary issue arises about extraterritoriality application of US laws,” prominent attorney Ravi Batra told PTI.

The US authorities have indicted Gautam and seven others including his nephew Sagar Adani, for being part of an alleged USD 265 million bribery scheme.

Batra noted that as US Chief Justice John Roberts ruled long ago, extraterritoriality is disfavoured in the comity of nations and hence comes with a presumption against it, “no matter if its our criminal or civil laws that appear violated. Anything else would lead to chaos in the rule of law.” Batra added that if the complaint of conduct is “of and concerning the United States,” then it is proper to prosecute criminal charges and civil claims.

“As to the civil case by the US Securities and Exchange Commission (SEC), like any other civil plaintiff, it must first serve its summons and complaint upon the defendants, and then they will have adequate time to answer the complaint, or if they prefer, move to dismiss the complaint or charges based upon the presumption against extraterritoriality or irrefutable proof that the complaint does not plead a plausible case,” Batra said.

Last week, a five-count criminal indictment uwas nsealed in federal court in Brooklyn charging Gautam, Sagar and Vneet Jaain, executives of an Indian renewable-energy company with conspiracies to commit securities and wire fraud and substantive securities fraud for their roles in a multi-billion-dollar scheme.

This was done to obtain funds from US investors and global financial institutions on the basis of false and misleading statements.

The indictment also charges Ranjit Gupta and Rupesh Agarwal, former executives of a renewable-energy company with securities that had traded on the New York Stock Exchange.

PTI input

Ahead of the commencement of the winter session of Parliament today, Congress MP Manickam Tagore B on Monday morning announced that he was set to move for an adjournment motion in the lower house to open up discussion for the Adani indictment matter.

“I hereby give notice of my intention to ask for leave to move a motion for the adjournment of the business of the house for the purpose of discussing a definite matter of urgent importance,” Tagore, whip of Congress party in Lok Sabha wrote in a letter to the Secretary General of Lok Sabha.

In the letter, Tagore expressed his desire to discuss the matter related to the United States (US) indictment of Gautam Adani over the “bribery, securities, fraud, and wire fraud” charges against Adani Group.

ANI report

TotalEnergies, which has 19.75 per cent stake in Adani Green Energy Ltd, said it will take all relevant actions to protect its minority investment in the company, and would not make any new financial contribution as part of its investments in the Adani group of companies.

In a statement the French energy major said that it rejected corruption in any form. “TotalEnergies has learnt through public announcements made by the US authorities of the indictment of certain individual Adani group executives in relation to an alleged corruption scheme linked to the business of Adani Green Energy Limited (AGEL). This indictment does not target AGEL itself, nor any AGEL related companies,” the company said. It also made it clear that it was not made aware of the existence of an investigation into the alleged corrupt scheme.

bl Mumbai Bureau reports | Read here

Adani Green Energy shares plunged 9.20% to close at ₹955 on the NSE.

Closing updates

Gainers 

• ​​Adani Enterprises​​ (+1.67%)
• ​​Adani Ports​​ & SEZ (+2.32%)
• ​​ACC ​​(+2.65)
• ​​Ambuja Cement​​ (+1.23%)
• ​​Adani Wilmar​​ (+0.92%)

Adani stocks in red 

• ​​Adani Green​​ Energy (-9.20%)
• Adani Energy Solutions (-4.15%)
• ​​Adani Power​​ (-2.27%)
• ​​Adani Total Gas​​ (-2.15%)
• NDTV (-2%)

(NSE data)

TotalEnergies statement on Adani Group: TotalEnergies has learnt through public announcements made by the US authorities of the indictment of certain individual Adani group executives in relation to an alleged corruption scheme linked to the business of Adani Green Energy Limited (AGEL). This indictment does not target AGEL itself, nor any AGEL related companies.

In accordance with its code of conduct, TotalEnergies rejects corruption in any form.

TotalEnergies, which is not targeted nor involved in the facts described by such indictment, will take all relevant actions to protect its interests as minority (19.75%) shareholder of AGEL and as a joint-venture partner (50%) in project companies with AGEL.

Until such time when the accusations against the Adani group individuals and their consequences have been clarified, TotalEnergies will not make any new financial contribution as part of its investments in the Adani group of companies.

TotalEnergies recalls that its investments in Adani’s entities were undertaken in full compliance with applicable laws, and with TotalEnergies’ own internal governance processes pursuant to due diligence and representations made by the sellers. In particular, TotalEnergies was not made aware of the existence of an investigation into the alleged corruption scheme.

Gainers 

• Adani Enterprises (+1.63%)
• Adani Ports & SEZ (+2.26%)
• ACC (+2.23)
• Ambuja Cement (+1.14%)
• Adani Wilmar (+1.97%)

Adani stocks in red 

• Adani Green Energy (-8.59%)
• Adani Energy Solutions (-3.57%)
• Adani Power (-3.89%)
• Adani Total Gas (-1.06%)
• NDTV (-2.60%)

(NSE data as at 3 pm)

Gainers 

• Adani Enterprises (+2.76%)
• Adani Ports & SEZ (+2.81%)
• ACC (+2.20)
• Ambuja Cement (+1.27%)
• Adani Wilmar (+0.65%)

Adani stocks in red 

• Adani Energy Solutions (-3.21%)
• Adani Power (-2.16%)
• Adani Green Energy (-1.59%)
• Adani Total Gas (-0.35%)
• NDTV (-1.53%)

(NSE data)

Billionaire Gautam Adani’s conglomerate on Monday showcased its cash reserves and profits that are enough to service debt obligations as well as meet growth plans as it reassured investors about business as usual despite a US bribery indictment against the founder.

The ports-to-energy conglomerate, whose chairman Adani and two other executives have been indicted in a US court for allegedly bribing Indian officials to secure solar power contracts, in a presentation to investors highlighted cash balances of Rs 55,024 crore exceeding long-term debt repayments for the next 28 months.

PTI - Read here

Rajya Sabha proceedings were adjourned for the day on Monday as opposition parties led by the Congress tried to raise the issue of the indictment of Adani group founder chairman Gautam Adani and others in a US court on charges of paying bribes to secure solar power supply contracts.

The House will meet again on Wednesday (November 27). There will be no sitting of Parliament on Tuesday to commemorate the 75th anniversary of the Constituent Assembly’s adoption of the Constitution in 1949.

Earlier, Chairman Jagdeep Dhankhar disallowed 13 notices served under rule 267, including seven that sought a discussion on the US indictment on the alleged payment of USD 265 million in bribes. But the Congress and Left parties insisted on a discussion, forcing a 15-minute adjournment of proceedings.

Soon after listed papers were laid on the table of the House and obituary references read out on the death of former MPs, Dhankhar said he had received 13 notices under rule 267 but was not convinced to accept them.

Leader of the Opposition and Congress president Mallikarjun Kharge, who was among the seven that sought a discussion on the Adani bribery issue, said if the listed business is suspended, the opposition parties can explain how the “very important” issue was impacting the entire country.

The image of the country has been tarnished globally and yet Prime Minister Narendra Modi was supporting Adani, he alleged.

At this point, Dhankhar ordered that nothing that Kharge says will go on record.

But as the opposition parties persisted, he adjourned the proceedings for 15 minutes.

When the House re-assembled at 11.45 am, the chairman said he has the highest respect for the members of the House and urged them to allow him to continue with the scheduled business.

However, some opposition members were heard raising certain matters.

The chairman then adjourned the proceedings of the House for the day.

The other notices under rule 267, which calls for suspending the listed business of the House to take up discussion on the issue being sought to be raised, pertained to continued violence in Manipur, violent clashes in UP’s Sambhal district and special assistance to the flood-hit Wayanad district of Kerala.

The Adani group has denied all charges in the US indictment, calling them baseless.

Gainers

• Adani Enterprises (+3.94%)
• Adani Ports & SEZ (+2.65%)
• ACC (+2.32)
• Adani Total Gas (+1.45%)
• Ambuja Cement (+1.22%)
• Adani Wilmar (+0.43%)
• Adani Green Energy (+0.40.%)

Adani stocks in red 

• Adani Energy Solutions (-2.53%)
• Adani Power (-0.30%)
• NDTV (-1.77%)

(NSE data)

Track bl’s live market updates here and read the mid-market report here

Bangladesh plans to review seven electricity supply contracts, including the one with Adani Power Ltd., signed during former Prime Minister Sheikh Hasina’s rule.

The national review committee of Bangladesh’s power ministry asked for “one or more top quality international legal and investigative firms” to assist it, the Muhammad Yunus-led interim government said in a statement on Sunday. The move coincides with US prosecutors indicting Adani Group Chairman Gautam Adani and seven others for allegedly offering bribes to Indian government officials.

The committee, led by a retired judge, is collecting evidence that may lead to potential renegotiation or cancellation of contracts, according to the statement. It wants to ensure that its investigations are “in line with international standards and will be acceptable in international negotiations and arbitration,” the government said.

Bangladesh, which is recovering from a violent regime change, paid $97 million to Adani Power last month and opened a letter of credit worth $170 million. The High Court in Bangladesh last week ordered the government to form a committee to look into the agreements. The committee is expected to file its report in two months. 

Prime Minister Narendra Modi appealed for peaceful parliamentary proceedings shortly before opposition lawmakers demanded a debate about billionaire Gautam Adani, forcing proceedings to be adjourned.

Mallikarjun Kharge, president of the Indian National Congress and leader of the opposition in the upper house of the parliament, demanded a debate about Adani as the winter parliamentary session kicked off Monday. Opposition lawmakers in the lower house of the parliament could also be heard calling for a discussion on the matter before proceedings were adjourned until Wednesday.

The prime minister warned the opposition against disrupting proceedings, telling reporters shortly before the session began that there should be “healthy debate.” Some members were trying to control the parliament for their “own political gains,” he said. 

The opposition — which has more than doubled its seats in the parliament after the June election result — had promised to raise the issue after US allegations last week linked Adani, who is considered to be a close ally of Modi, and other top executives to a $250 million bribery plot. 

The whip from the Indian National Congress introduced a motion in the parliament on Monday for a discussion on the bribery charges and the prime minister’s “friendship with Adani.” More protests are likely during the winter parliamentary session, which lasts until Dec. 20.

The calls from the opposition follows a bruising election defeat in Maharashtra state, home to the financial capital Mumbai. Results on the weekend showed Modi’s Bharatiya Janata Party swept the polls with more than two-thirds of the seats in the local legislature. 

A U.S. agency said on Sunday that it is reviewing the impact of Department of Justice bribery allegations against the founder of India’s Adani Group on the agency’s prior agreement to lend more than $550 million to a Sri Lankan port development backed by the group.

The U.S. International Development Finance Corp last November said it would provide $553 million in financing for the port terminal project in Colombo, the capital of Sri Lanka. The project is partly owned by the Adani Group.

Federal prosecutors in New York on Wednesday announced that Gautam Adani, the billionaire founder of the Adani Group, and seven other individuals had been indicted on charges of paying about $265 billion in bribes to Indian government officials to obtain contracts expected to yield $2 billion of profit over 20 years, and develop India’s largest solar power plant project.

“DFC is aware of the recent allegations related to Adani and is actively assessing the ramifications in light of the recent DOJ announcement,” an official with the development agency said in a statement.

“We are committed to ensuring that our projects and partners uphold the highest standards of integrity and compliance,” the official said.

The agency said that no funds have yet been disbursed under the loan commitment.

Bloomberg News first reported the news on the DFC on Sunday.

The Adani Group did not immediately respond to requests for comment outside regular business hours on Sunday.

Reuters report

Gainers

• ​Adani Enterprises​ (+3.50%)
• ​ACC ​(+2.79)
• ​Adani Ports​ & SEZ (+2.34%)
• ​Ambuja Cement​ (+2.03%)
• ​Adani Total Gas​ (+1.62%)
• ​Adani Wilmar​ (+0.94%)
• ​Adani Power​ (+0.52%)

Adani Energy stocks decline

• Adani Energy Solutions (-2.10%)
• ​Adani Green​ Energy (-0.41.%)

• NDTV (-0.96%)

(NSE data)

• Adani Enterprises (+3.64%)
• ACC (+3.19)
• Adani Ports & SEZ (+2.48%)
• Ambuja Cement (+2.03%)
• Adani Total Gas (+1.63%)
• Adani Wilmar (+1.23%)
• Adani Green Energy (+0.85%)
• Adani Power (+0.51%)
• Adani Energy Solutions (-0.07%)
• NDTV (-0.54%)

(NSE data)

The group’s core infrastructure business, consisting of utilities, transport, and ports, accounted for nearly 87 per cent of the total EBITDA, the group said. Companies that form part of the core infrastructure business are Adani Green Energy, Adani Energy Solutions, Adani Ports and SEZ, Adani Power, and Adai Total Gas.

On an annualized basis, its EBITDA was at ₹88,912 crore, it added.

At the end of September, its asset base was ₹5.53 lakh crore, and its cash balance at the portfolio level was ₹53,024 crore, just over a fifth of its gross debt. Portfolio companies in the group had invested ₹75,277 crore.

The group said it had sufficient liquidity to cover all debt servicing requirements for at least the next 12 months.

It said the emerging infrastructure businesses of the group under Adani Enterprises, which include airports, solar and wind manufacturing, and roads, reported EBITDA growth of over 70 per cent in the first half.

bl Mumbai Bureau | Read here

Investors in GQG’s stock (listed in Australia) gave their first verdict when the stock plunged by 20 per cent on November 21.

A buyback announcement amounting to around 1 per cent of GQG’s stock, hardly enticed investors the next day (stock closed up by a modest 3.7 per cent). This portends probably the first major challenge to GQG’s management and its reputation, which has had a solid track record across its four global investment strategies (International Equity, Global Equity, Emerging Markets Equity and US Equity ) backing it, since inception in 2014.

Given its reputation, its stakes in Adani Group companies which amounted to almost $9.5 billion in October 2024, are now too big to fail. In total these stakes account for 6 per cent of its AUM of around $158 billion and 8 per cent in one of its emerging markets investment vehicles (Bloomberg data).

bl Research Bureau |Read here

Securities Exchange Board of India (SEBI) has completed all 24 investigations in the Adani-Hindenburg case and is set to submit its final report soon.

Earlier the market regulator had informed the Supreme Court that it had completed 22 of the 24 investigations. One of the two remaining investigations related to trading pre and post-Hindenburg report was to ascertain whether some entities’ short positions were unusual when the report was released. In this regards, SEBI has issued a show-cause notice to Hindenburg Research.

SEBI’s investigation found that the disclaimer by the short seller on holding positions in the Adani group stock “only through non-Indian traded securities was misleading since it concealed the complete extent of its financial interest in companies which were the subject of its research report due to Hindenburg’s direct stake in profits from positions taken by the FPI in the future of AEL on the Indian stock exchange.” Hindenburg has dismissed SEBI’s findings as “nonsense”.

bl Mumbai Bureau |Read here

Adani Power Limited nor any of its subsidiaries have entered into any contract in connection with any airport or transmission line in Kenya.

Adani Power stock traded at ₹466.85 on the NSE, up 1.39% 

Adani dollar bond prices fell to almost one-year lows on Monday as investors cut their exposure to the Indian conglomerate in the wake of bribery and fraud allegations from U.S. authorities.

The group’s billionaire chairman, Gautam Adani, and seven other people were last week charged with agreeing to pay around $265 million in bribes to Indian government officials.

The charges related to alleged payments to obtain contracts that could yield $2 billion of profit over 20 years as well as to develop India’s largest solar power project.

The charges also included making misleading statements to the public despite being made aware of the U.S. investigation in 2023.

Reuters report | Read here

• ​​Adani Enterprises​​ (+2.61%)
• ​​ACC ​​(+2.27)
• ​​Ambuja Cement​​ (+1.97%)
• ​​Adani Total Gas​​ (+1.92%)
• ​​Adani Ports​​ & SEZ (+1.30%)
• ​​Adani Power​​ (+1.29%)
• ​​Adani Green​​ Energy (+1.15%)
• Adani Energy Solutions (+1.23%)
• ​​Adani Wilmar​​ (+1.23%)
• NDTV (-1.25%)

(NSE data)

• ​Adani Green​ Energy (-7.96%)
• Adani Energy Solutions (-6.94%)
• ​Adani Power​ (-3.08%)
• ​Adani Wilmar​ (-0.64%)
• ​Ambuja Cement​ (+3.81%)
• ​ACC ​(+3.30)
• ​Adani Enterprises​ (+2.12%)
• ​Adani Ports​ & SEZ (+2.09%)
• ​Adani Total Gas​ (+1.51%)
• NDTV (+0.85%)

(NSE data)

• Adani Green Energy (-8.56%)

• Adani Energy Solutions (-7.29%) 

• Adani Power (-3.59%)
• Adani Wilmar (-1.05%)
• Ambuja Cement (+3.34%)
• ACC (+2.95)
• Adani Enterprises (+1.73%)
• Adani Ports & SEZ (+1.93%)
• Adani Total Gas (+0.20%)
• NDTV (+1.51%)

(NSE data as at 3.10 pm)

Andhra Pradesh Chief Minister N Chandrababu Naidu on Friday said the state government is in possession of the “chargesheet reports” filed in the US related to the alleged bribery scam involving the previous YSRCP government and the Adani Group, and “promised” to act on the irregularities.

PTI

Indian billionaire Gautam Adani has been indicted by U.S. prosecutors for his alleged role in a $265 million scheme to bribe Indian officials, sending shockwaves across his eponymous $142 billion ports-to-soybeans business conglomerate.

Here is what you need to know about the U.S. indictment.

THE MAJOR U.S. INDICTMENT

Gautam Adani, one of world’s richest people, faces his biggest challenge after being charged with seven others for alleged bribery related to power supply deals from energy projects in India, with U.S. authorities calling it “The Corrupt Solar Project”.

Adani Group says the allegations are baseless and has vowed to seek “all possible legal recourse”.

There is a growing spotlight on Sagar Adani, a millennial scion of the company who kept track of hundreds of millions of dollars of alleged bribes to Indian officials, in notes the prosecutors described as “bribe notes”.

The alleged bribes caught the attention of U.S. authorities as Adani’s companies were raising funds from U.S.-based investors in several transactions starting 2021.

STOCK ROUT AND FALLOUT

The U.S. indictment has jolted Adani Group debt and equity. Adani Group bonds dropped for a second session after the news. However, stocks in the conglomerates’ companies stabilized on Friday, a day after nearly $27 billion was knocked off from the combined market value of those shares.

In a major blow, Kenya ordered the cancellation of Adani infrastructure deals worth over $2.5 billion. And back in India, opposition parties have demanded a probe into allegations of wrongdoing and said they would raise the issue in parliament.

WHAT NEXT FOR ADANI, LEGAL OPTIONS

A key question is what is next for Gautam Adani? He is charged with foreign bribery, securities fraud, securities fraud conspiracy and wire fraud conspiracy.

Adani has not been arrested and his whereabouts are unknown, though he is believed to be in India.

A trial could still be a long way off, even if Adani is extradited or surrenders in the U.S.

If convicted, Adani could face decades in prison as well as monetary penalties, though any sentence would ultimately be up to the judge overseeing the case.

Reuters

• Adani Energy Solutions (-5.18%)
• Adani Green Energy (-2.04%)
• Adani Wilmar (-0.81%)
• Adani Power (-0.65%)
• Ambuja Cement (+3.30%)
• ACC (+3.843.73)
• Adani Enterprises (+2.49%)
• Adani Ports & SEZ (+2.41%)
• Adani Total Gas (+1.14%)
• NDTV (+1.34%)

(NSE data as at 2 pm)

Indian banks’ loan exposure to the embattled Adani Group seems “manageable” and any credit risk in the aftermath of its billionaire founder-chairman’s indictment in the United States looks “contained,” JPMorgan said on Friday.

U.S. prosecutors have charged Gautam Adani, one of the world’s richest people, and seven other people with paying $265 million in bribes to Indian government officials for contracts, including to develop the country’s largest solar power plant.

Adani Group has said the accusations are “baseless” and that it will seek “all possible legal recourse”.

Shares of Indian state-owned banks fell 2.7% on Thursday over worries about the extent of their exposure to the ports-to-power conglomerate that spans about 10 listed companies in all.

However, JPMorgan analysts said Indian banks’ exposure to the group was around 0.3% of outstanding loans as of March and that the loans were backed by asset cover.

“We don’t see major credit risk as the underlying companies are not implicated,” the Wall Street brokerage said in a note. Moreover, Indian banks’ exposure to Adani Green, which is at the centre of the allegations, is “materially lower” at just six basis points of banking system credit as of September, JPMorgan said.

“We do not see any systemic risk to Indian financials from a potential credit event in Adani Green, given the low exposure, asset cover, improving operating performance of the broader Adani Group and the capital and standard asset buffers at banks,” the investment bank said.

Reuters

Gautam Adani, Sagar Adani, Adani Green Energy, and the Adani group may have violated Securities and Exchange Board of India’s Listing Obligations and Disclosure Requirements by not disclosing to the exchanges, shareholders about the details of the ongoing investigations by the US authorities, and laid itself open to regulatory action.

“SEBI should issue a show cause notice to the Adani group companies on the inadequate disclosures on the US investigations,” said Shriram Subramanian, founder and managing director of proxy advisory firm InGovern Research Services.

The US Department of Justice and Securities and Exchange Commission, which is probing the conglomerate and Gautam Adani on charges of bribing Indian officials to get solar energy contracts, have also accused them of giving false and misleading information to investors, potential investors, and financial institutions.

Janaki Krishnan of businessline writes | Read here

• Adani Energy Solutions (-5.14%)
• ​Adani Green​ Energy (-1.09%)
• ​Adani Wilmar​ (-0.47%)
• ​Ambuja Cement​ (+3.88%)
• ​ACC ​(+3.84%)
• ​Adani Enterprises​ (+2.32%)
• ​Adani Ports​ & SEZ (+1.88%)
• ​Adani Total Gas​ (+1.25%)
• ​Adani Power​ (+0.75%)
• NDTV (+1.10%)

(NSE data as at 1.15 pm)

The recovery in Adani Group stocks, particularly Adani Enterprises’ strong performance, suggested improving investor confidence following Thursday’s selloff. The market showed resilience despite ongoing concerns about foreign institutional investor outflows, which had marked their 37th consecutive day of selling in the previous session.

Read here

Some global banks are considering temporarily halting fresh credit to India’s Adani Group but staying put with existing loans following U.S. prosecutors’ indictment of its billionaire founder Gautam Adani for fraud, sources said.

Reuters

Most Adani Group stock rebounded, led by the green energy unit, after US prosecutors’ charges of bribery against founder Gautam Adani erased $27 billion from the conglomerate’s market value on Thursday.

Adani Enterprises Ltd. reversed losses of as much as 7.3%, after the 23% plunge on Thursday made the stock the most oversold in 18 months. Adani Ports & Special Economic Zone Ltd. rose as much as 2.4%, while Adani Green Energy Ltd. rallied 6.5%. Nine of the group’s 10 firms rose.

Bloomberg

(NSE data)

Track bl’s stock market live here

• Adani Energy Solutions (-2.71%)
• Ambuja Cement (+5.01%)
• Adani Enterprises (+4.66%)
• ACC (+4.33%)
• Adani Green Energy (+3.90%)
• Adani Ports & SEZ (+2.87%)
• Adani Total Gas (+2.75%)
• Adani Power (+2.49%)
• NDTV (+1.51%)
• Adani Wilmar (+0.78%)

(NSE data as at 12.11 pm)

With the US filing civil and criminal charges against billionaire Gautam Adani and seven others over a multi-million-dollar bribery scheme, a prominent attorney here has said that the case could escalate significantly, potentially leading to arrest warrants and even extradition attempts.

Adani Group, however, denied the charges saying the allegations by US prosecutors are “baseless” and the conglomerate is “compliant with all laws”.

“US Attorney Breon Peace has the right to get arrest warrants issued against Adani and seven others indicted and serve them on the nations where they reside,” Indian-American attorney Ravi Batra told PTI on Thursday.

Input from PTI

Adani Group, whose billionaire chairman has been indicted for fraud by U.S. prosecutors, is facing accusations of racism at its Australian coal unit after an Aboriginal group filed a complaint with the country’s Human Rights Commission.

The Nagana Yarrbayn Wangan & Jagalingou Cultural Custodians in Queensland state said it filed a complaint alleging serious racial discrimination by the unit, Bravus Mining and Resources, earlier this week.

The complaint details how Adani employees sought to “verbally and physically obstruct and prevent” members of the Aboriginal group from accessing springs near Adani’s Carmichael coal mine “in order to perform cultural rites and share cultural knowledge”, the group said in a statement.

“We have endured years of discrimination and vilification from Adani, and we’re not putting up with this anymore,” Nagana Yarrbayn Senior Cultural Custodian, Adrian Burragubba said in the statement.

Input from Reuters

Refinancing for Adani Group’s green energy business is the biggest concern in the near term after the indictment of the conglomerate’s founder Gautam Adani by US prosecutors, according to research firm CreditSights. 

“Funding channels will inevitably squeeze across the Adani Group, with creditors likely to reduce or limit their group-wide exposure,” the firm’s analysts Lakshmanan R, Jonathan Tan and Nicole Chua wrote in a note. The analysts said they are most concerned about Adani Green Energy Ltd. “given it has the weakest liquidity and credit fundamentals.” 

The analysts pointed to short-term debt of about $2 billion at Adani’s green energy business and the unit’s decision to scrap a $600 million bond this week, the proceeds of which were earmarked for repaying foreign-currency loans. On Friday, most of the Adani Group’s dollar bonds extended declines after US charges this week alleging that the conglomerate’s founder helped drive a $250 million bribery scheme. 

The Adani Group said that the allegations are baseless. 

S&P Global Ratings revised to negative the credit outlook for multiple Adani Group entities on Friday, following the US bribery charges, citing funding access and financing cost concerns.

Input from Bloomberg

Adani Energy Solutions (-4.70%)

Adani Green Energy (-1.03%)

Adani Enterprises (-0.99%)

Adani Wilmar (-0.47%)

Adani Ports & SEZ (+0.39%)

Adani Power (+0.42%)

Adani Total Gas (+0.56%)

NDTV (+0.92%)

ACC (+3.15%)

Ambuja Cement (+4.50%)

(NSE data as at 11 am)

Following the indictment by US authorities of ​Gautam Adani​ and other officials ​S&P Global Ratings​ has revised to negative the outlook on Adani Electricity Mumbai, and Adani Ports and Special Economic Zone while affirming the ‘BBB-’ ratings on these entities.

The global rating agency that it revised outlook on Adani Green Energy Restricted Group 2 to negative, though it was ringfenced from the parent, Adani Green Energy, which was linked to the indictment. It said it affirmed the BB+ rating.

“The negative outlook on these entities indicates that, in our view, their cash flows could be materially affected if their funding access weakens, their funding costs rise significantly, or the allegations are proven, in addition to our assessment of their governance and business profiles,” it said.

bl Mumbai Bureau | ​Read here​

(Source: X/ @kharge)

The White House has said it is aware of the allegations against Indian billionaire Gautam Adani, chairman of Adani Group, who was indicted in New York over his role in an alleged multibillion-dollar bribery and fraud scheme.

Addressing reporters during her daily briefing, White House Press Secretary Karine Jean-Pierre expressed confidence that Indian and the US could navigate the issue without compromising their robust partnership.

“So, Obviously, we’re aware of these allegations, and I would have to refer you to the SEC (Securities and Exchange Commission) and DOJ (Department of Justice) about the specifics of those - of those allegations against the Adani Group,” she said.

Jean-Pierre said that the relationship between the US and India remains solid. “What I will say is on the US and India relationship, we believe that it stands on an extremely strong foundation anchored in ties between our people and cooperation across a full range of global issues,” she said.

She further expressed confidence in the ability of the two nations to navigate the situation. “What we believe and we’re confident about is that we’ll continue to navigate this issue as we have with other issues that may have come up. And so the specifics of this, this is something that the SEC and DOJ can speak to directly, but again, we believe that...this relationship between India and the US has been built on a strong foundation,” the White House spokesperson added.

The US Attorney’s Office for the Eastern District of New York had earlier unsealed criminal charges against Gautam Adani, his nephew Sagar Adani and other executives linking them to an alleged bribery scheme.

Inputs from ANI

• A U.S. indictment of three board representatives of an unrated Adani group entity could affect investor confidence in other Adani group entities (because the founder is on the board of multiple entities within the group), thereby potentially impairing their funding access and increasing their funding costs.
• U.S. prosecutors allege that the board members are involved in a US$250 million bribery scheme related to solar power contracts in India, and that they breached the anti-bribery compliance policy through misrepresentation to investors in an offshore bond (unrated).
• In our view, this could further raise questions regarding the management and governance of various Adani group entities. The indictment is independent of, but follows, a short seller report that led to investigation by Indian Supreme Court and India’s capital market regulator.
• Because of the potential impact across the wider Adani Group, we ​revised to negative ​the outlook on Adani Electricity Mumbai Ltd. (Adani Electricity) and Adani Ports and Special Economic Zone Ltd. (Adani Ports). We also affirmed our ‘BBB-’ ratings on these entities.
• Project finance entity Adani Green Energy Ltd. Restricted Group 2 (AGEL RG2) is a subsidiary of Adani Green Energy Limited (AGEL), the entity linked to the allegations. Although it is ringfenced from the parent, we revised to negative the outlook on AGEL RG2 and affirmed our ‘BB+’ issue rating.
• The negative outlook on these entities indicates that, in our view, their cash flows could be materially affected if their funding access weakens, their funding costs rise significantly, or the allegations are proven, in addition to our assessment of their governance and business profiles.
• Our rating on North Queensland Export Terminal Pty Ltd. (NQXT) already captures refinancing risk for maturities due in 2025; therefore, we affirmed the ‘BB’ issue rating on NQXT and the outlook remains stable. Similarly, Adani International Container Terminal Private Ltd. (AICTPL) is not exposed to refinancing risk or significant foreign exchange risk, so we affirmed our ‘BBB-’ issue rating on AICTPL and the outlook remains stable

Adani Group companies’ shares fell for a second straight day on Friday after U.S. prosecutors charged the Indian conglomerate’s billionaire chairman in an alleged bribery and fraud scheme.

Gautam Adani’s flagship Adani Enterprises fell 4% to hit their lowest since May 2023.

Adani Ports, Adani Total Gas, Adani Green, Adani Power, Adani Wilmar and Adani Energy Solutions fell between 3% and 10%.

ACC was down 0.5%, while Ambuja Cements and NDTV rose about 1% each.

Reuters input

An unprecedented bribery charge from US prosecutors against India’s largest corporate group is threatening to deepen the record exodus of global funds from the nation’s equities.

Adani Group’s shares lost nearly $27 billion in market value Thursday after US federal prosecutors accused its billionaire founder and other executives of allegedly plotting to bribe Indian government officials to win solar energy contracts. That may exacerbate the outflows from overseas investors who have already offloaded $14 billion of stocks since the end of September, including a record amount last month.

Although the Adani Group has limited sway over India’s $4.4 trillion stock market due to its relatively low weighting in the main equity gauges, the indictment will likely raise fresh doubts about corporate governance in the country. These new concerns add to existing worries about the slowdown in the earnings momentum that have pushed the main NSE Nifty 50 Index to a five-month low.

“The US charges on Adani Group could further spark risk-off sentiment,” said Nitin Chanduka, a strategist at Bloomberg Intelligence. India’s market is already “grappling with the sharpest earnings downgrades since the pandemic, with rich valuations resulting in a strong foreign exodus,” he said. 

Adani has denied the allegations, calling them baseless, and announced plans to seek legal recourse.

Bloomberg input

Last time it was the ‘Foreign Shortseller’ and this time it is the ‘Foreign Court.’ Can the Adani Group weather the storm this time?

To begin with it is important to understand that charges under US Federal Law - Foreign Corrupt Practices Act (FCPA) are not business breaking. Quite a few companies have managed to comfortably deal with it by paying some hefty penalties. But difference here though is that many of these companies like Cognizant Technology Solutions, Walmart, SAP amongst others were not frequently in the markets for capital raise. This is one area where, the Adani Group is likely to face speed bumps. Moody’s made a comment that the bribery allegations is credit negative event. Precisely the kind of events that stonewall the group’s insatiable appetite to expand fast by borrow large.

bl Research Bureau|​Read here​

• Adani Energy Solutions (-5.26%)
• Adani Green Energy (-5.20%)
• Adani Enterprises (-1.27%)
• Ambuja Cement (+1.62%)
• Adani Ports & SEZ (-1.13%)
• Adani Wilmar (-1.10%)
• Adani Power (-0.55%)
• Adani Total Gas (+0.03%)
• ACC (+1.72%)
• NDTV (+1.15%)

(NSE data as at 9.28 am)