Adani Group stocks witnessed a sharp surge on Wednesday, defying the overall sluggishness in the stock market. This comes after a period of significant decline triggered by bribery allegations against Gautam Adani, his nephew Sagar Adani, and others in the U.S. The renewed confidence in Adani stocks follows a clarification issued by Adani Green Energy, dismissing the allegations.
All Adani Stocks Turn Green
Despite the market’s lackluster performance, all ten listed Adani Group companies saw gains. Adani Enterprises, the group’s flagship company, climbed by 3.90% to ₹2,399.45, while Adani Green Energy, which was at the center of the bribery allegations, surged by 4.08% to ₹932.
Previously, reports from the U.S. alleged that Adani Group officials offered a $265 million (₹2,200 crore) bribe to Indian officials to secure a solar contract for Adani Green. These allegations had caused a sharp drop in Adani Group’s market capitalization, wiping out ₹3 lakh crore.
Why the Sudden Recovery?
The surge in Adani stocks can be attributed to the clarification issued by Adani Green Energy. In a stock exchange filing, the company clarified that the bribery charges by the U.S. Department of Justice were not against Gautam Adani, Sagar Adani, or Vinit Jain. Instead, the allegations targeted officials from Azure Power and CDPQ. The company emphasized that reports linking Adani Group officials to bribery or corruption were baseless.
Legal Experts Back Adani Group
Senior legal experts have also come forward to address the allegations. Mukul Rohatgi, a former Attorney General of India, stated in a press conference that neither Gautam Adani nor Sagar Adani has been implicated under the U.S. Foreign Corrupt Practices Act (FCPA), which is comparable to India’s Prevention of Corruption Act. Rohatgi clarified that the charges in the indictment are unrelated to Adani Group officials.
What Lies Ahead?
The stock rally reflects investor confidence in the Adani Group’s clarification and legal backing. However, the situation remains dynamic, and the market will closely watch further developments regarding these allegations.
