Adani Stocks Rise After Green Energy Arm Clarifies On US Allegations
Shares of Adani Power Ltd. were trading 2.65% up at Rs 449.25 apiece as of 09:41 a.m.
Shares of Adani Group companies were trading higher in early market hours on Wednesday, following Adani Green Energy Ltd.'s statement on bribery charges levelled by US Department of Justice. The green energy unit of the ports-to-power conglomerate clarified that chairman Gautam Adani, Executive Director Sagar Adani, and Chief Executive Officer Vneet Jaain have not been implicated in the bribery charges outlined in the indictment filed by the Justice Department.
Adani Power Ltd. shares were trading 2.65% up at Rs 449.25 apiece as of 09:41 a.m., followed by Adani Energy Solutions Ltd. with a gain of 2.33% at Rs 614.75. Adani Total Gas Ltd. stocks were trading nearly 2% up at Rs 590.75 apiece, and shares of Adani Green Energy Ltd. posted 1.08% gains at Rs 908.25.
Adani Enterprises share price was trading 1.39% up at Rs 2,180.35, as compared to the benchmark NSE Nifty 50, which saw a 0.12% decline.
In a statement filed with exchanges in early hours of Wednesday, Adani Green rejected news reports suggesting that other Adani officials had been charged with bribery under the US Foreign Corrupt Practices Act as "incorrect".
Only senior officials of Azure Power Global Ltd. and Canadian pension CDPQ have been named in the bribery charges under the US FCPA provisions, Adani Green Energy cited the latest filing from the US Department of Justice.
The allegations, which involve corruption and bribery in connection with the development of Adani's solar power projects in India, were revealed in an indictment filed by the US Department of Justice and a civil complaint by the SEC.
These charges accuse the company of engaging in illegal financial activities to secure government contracts, including the development of what is claimed to be India's largest solar power plant.
In response to these developments, Adani Green Energy has decided to cancel its planned fundraising through USD-denominated bonds. This decision comes shortly after Adani Green's subsidiary successfully raised $600 million through a bond issue, which was three times oversubscribed, just hours before the US Department of Justice and SEC filed the allegations against Adani Green, its subsidiaries, and the company’s board of directors.
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