Gautam Adani Charged in U.S. Bribery and Fraud Scheme – Adani Dollar Bonds Tumble

The U.S. Securities and Exchange Commission (SEC) has charged Gautam Adani, the billionaire chairman of the Adani Group, with defrauding American investors and bribing Indian government officials. The charges come after an investigation into a bribery scheme allegedly orchestrated to secure contracts for a multibillion-dollar solar energy project awarded by the Indian government. The SEC claims that Adani Green and Azure Power were involved in the scheme to secure these projects, and that Adani and his associates misled investors while seeking capital from U.S. and international markets.

Key Developments:

Adani’s $600 Million Dollar Bond Offering Withdrawn:
Adani Green Energy Ltd. has pulled its proposed $600 million U.S. dollar-denominated bond offering after the indictment in the U.S. related to bribery and securities fraud charges.

Adani Stocks and Bonds Hit Hard:
Adani’s dollar-denominated bonds, including those of Adani Ports and Adani Transmission, saw sharp declines. In the early hours of Thursday, Adani Enterprises shares dropped 10%, and other Adani group stocks fell between 8% and 20%.

Adani Ports: -10%
Adani Green Energy: -16%
Adani Power: -11%
Indian Stock Market Reaction:
The BSE Sensex plunged by nearly 600 points, slipping under the 77,000 mark. The NSE Nifty also experienced a notable decline, dropping by over 0.7%, with Adani stocks being major contributors to the downfall.

U.S. Attorney’s Office Details the Bribery Scheme:
The U.S. prosecutors allege that Adani and his associates promised over $250 million in bribes to Indian officials to secure the solar energy contracts, potentially yielding profits of $2 billion over 20 years.

Adani Group’s $22 Billion Loss in Market Value:
Following the U.S. charges, the Adani Group saw a staggering $22 billion wiped off its market value.

Political Reactions:
In India, Congress has seized on the U.S. charges to demand a Joint Parliamentary Committee (JPC) investigation into Adani Group’s financial transactions. Congress leaders have also alleged that Adani personally met with Indian officials to advance the bribery scheme.

Indian Rupee Declines:
The Indian Rupee hit a record low of 84.4250 against the U.S. dollar, amid the market turbulence and anticipated equity outflows. However, interventions by the Reserve Bank of India helped limit further declines.

The U.S. indictment is a significant blow to the Adani Group, whose empire spans energy, ports, infrastructure, and more. The charges are the latest in a series of legal and financial challenges faced by the conglomerate, which has denied any wrongdoing.

Stay tuned for more updates as this story develops.