The Adani Group has been thrust into turmoil following allegations of a $250 million bribery scheme. U.S. prosecutors accuse company executives, including Gautam Adani, of paying bribes to secure solar energy contracts in India. These charges, filed in Brooklyn, also allege that the group misled American investors about its financial dealings, compounding its troubles in the global market.
In the aftermath of these allegations, the group’s bond prices have plummeted to record lows, reflecting investor panic. Some bonds issued earlier this year are now trading at just 80 cents on the dollar. The Adani Group's stock has also been battered, with shares of key entities like Adani Green Energy and Adani Enterprises dropping by as much as 20% on Indian exchanges.
Adding to the chaos, Adani abruptly canceled a $600 million bond offering just hours after pricing it. This decision, attributed to "legal developments," underscores the mounting pressure on the conglomerate as it battles a growing list of governance and compliance concerns. Critics argue that these allegations further erode the credibility of a group already scrutinized for alleged stock manipulation and fraud.
Despite the accusations, the Adani Group vehemently denies any wrongdoing, describing the charges as "baseless." The company insists on its commitment to legal compliance and vows to fight the claims in court. However, the fallout from these allegations may deter future investments, particularly from Western financial markets.
The scandal is another significant blow for the Adani empire, following the 2023 Hindenburg Research report that wiped out over $150 billion in market value. This latest controversy threatens to further erode investor trust and cast a shadow over the group's ambitious growth plans.
