Adani stocks in loss as US widens probe

Shares of Adani group companies traded weak on March 18 following a Bloomberg report that the US government had widened its investigation of the conglomerate over suspicions of bribery.

A note from unit Adani Ports & Special Economic Zone Ltd. due in 2041 slid 2.4 cents, the most since August, to 79.1 cents. Another bond from subsidiary Adani Renewable Energy RJ Ltd. due 2039 fell 2.3 cents to 83 cents, the worst drop since February 2023. That pares gains in recent months that sent the securities to their highest levels since 2022, Bloomberg said.

On Dalal Street, shares of Adani Total Gas were the biggest loser as it was trading 4% lower at noon. Stocks of Adani Transmission, Adani Ports, Ambuja Cements, ACC, Adani Green and Adani Enterprises were trading 2-3% lower.

Earlier in the morning, the stocks had dropped up to 8% before paring some of those losses.

On March 15, Bloomberg had reported that the US government was looking into the conduct of founder and Chairman Gautam Adani, and whether Adani entities or affiliates of the company were involved in bribing Indian officials for preferential treatment on energy projects.

The US Attorney’s office for the Eastern District of New York and the Department of Justice’s fraud unit were handling the investigation. Adani said it was not aware of any investigation against the firm or its founder.

The Bloomberg report comes in a year after short-seller Hindenburg Research accused Adani of fraud and market manipulation. The conglomerate had denied the allegations and was also cleared by the Securities and Exchange Board of India.

Last year, Adani Group stocks crashed after short-seller Hindenburg Research accused the conglomerate of manipulating its stock price and accounting fraud. The group vigorously denied the allegations and its shares have since recovered.