On Thursday, the Adani Group experienced a loss of $34 billion (Sh 442 billion) in market value. This occurred following events in the U.S. Prosecutors have charged billionaire chairman Gautam Adani in connection with an alleged bribery and fraud scheme.
Gautam Adani’s flagship company, Adani Enterprises, fell as much as 23%, reaching its lowest point since November. 2023 recorded its largest single-day decline since February of last year.
Other companies within the Adani Group, such as Adani Ports, Adani Total Gas, Adani Green, Adani Power, Adani Wilmar, Adani Energy Solutions, ACC Ambuja Cement, and NDTV, experienced a decline in their shares ranging from 6% to 19%.
“Typically, investors do not tolerate any lapses in corporate governance, and until there is clarity, they will likely avoid Adani group stocks,” stated Saurabh Jain, a retail equities analyst at SMC Global Securities.
In response, Adani Group characterized the allegations as “baseless and denied,” and committed to pursuing “all possible legal recourse. “
