Adani Stocks Face Historic Plunge: Rs 2.25 Lakh Crore Loss Amid Bribery Scandal and US Charge

Adani Group has faced a massive market crash, recording its worst trading day since the Hindenburg crisis, as its stocks plummeted by Rs 2.25 lakh crore. This dramatic fall is attributed to serious bribery charges against billionaire Gautam Adani and other executives, which were filed by US prosecutors.

Shares of Adani companies, including Adani Enterprises, Adani Energy Solutions, and Adani Ports, dropped sharply, with many falling by up to 20%. This crash led to a total market capitalization decline to Rs 12 lakh crore, a major blow to the conglomerate. Gautam Adani’s net worth also plummeted by $10.5 billion, according to Forbes, reflecting the significant financial impact of the charges.

The legal storm intensified when the US Securities and Exchange Commission (SEC) indicted Gautam Adani and his associates, accusing them of offering $265 million in bribes to secure solar energy contracts in India. These actions allegedly misled US investors, resulting in massive financial fraud. The charges claim the bribes were paid to Indian government officials to secure energy contracts worth billions, with expectations of a $2 billion profit over the next 20 years.

The market reaction was severe, with Adani stocks crashing by up to 20% across multiple companies. This drop not only shook the stock market but also impacted bond prices. Moody’s Ratings confirmed that this legal crisis is a significant concern for Adani Group’s credit outlook.

The crisis also caught the attention of major investors, including GQG Partners, which saw a 26% decline in its shares in Australia. GQG expressed concern over the charges and is reviewing its involvement with the Adani Group.

Also Read: Gautam Adani Charged with Bribery in US Over Solar Project Scandal: What’s Behind the Allegations?