Dollar bonds and Adani stocks fall amid a US government inquiry

Monday saw a decrease in the share prices of the conglomerate’s ten firms after allegations that the US government was investigating the actions of the Adani group.

Early trading saw a roughly 4% decline in Adani Enterprises Ltd. shares and a nearly 3% decline in Adani Ports and Special Economic Zone Ltd. stock.

Additionally, Adani Power Ltd. and Adani Wilmar Ltd. had declines of more than 1%, while Adani Total Gas Ltd., Adani Energy Solutions Ltd., Adani Green Energy Ltd., and Adani Energy Solutions Ltd. saw decreases of 2-3% in trade.

According to allegations, the US government is investigating whether Adani, the company’s founder and chairman, and Adani businesses or affiliates were engaged in bribing Indian authorities in exchange for favorable treatment on energy projects.

In addition, in response to the announcement, a number of Adani Group’s dollar bonds had their worst declines in over six months.

One dollar bond, issued by Adani Ports & Special Economic Zone Ltd and due in 2041, fell 2.4 cents to 79.1 cents, the highest since August.

A different Adani Renewable Energy RJ Ltd subsidiary bond, which is due in 2039, saw its price decrease to 83 cents from 2.3 cents, the lowest since February 2023.

This cuts back on recent advances that drove the stocks to their best points since 2022. The investigation was being handled by the Department of Justice’s fraud branch and the US Attorney’s office for the Eastern District of New York.

The Adani Group, however, said that it was unaware of any inquiries made against the company or its founder.

The Adani Group released a statement saying, “We are not aware of any investigation against our chairman.” It also said, “We are subject to and fully compliant with anti-corruption and anti-bribery laws in India and other countries as a business group that operates with the highest standards of governance.”

According to persons with firsthand knowledge of the situation, US investigators are looking into whether an Adani firm or individuals connected to the business, such as Gautam Adani, were engaged in bribing Indian authorities for favorable treatment on an energy project.

According to persons familiar with the situation, the US Attorney’s Office for the Eastern District of New York and the Justice Department’s fraud branch in Washington are handling the investigation, which also includes an examination of the Indian renewable energy business Azure Power Global Ltd.