Amid the reports that the US government was looking into the conduct of Adani group, shares of conglomerate’s all 10 companies traded lower on Monday.
The stock of the Adani Enterprises Ltd fell nearly 4 per cent in early trade, while Adani Ports and Special Economic Zone Ltd shed nearly 3 per cent.
Further, the Adani Wilmar Ltd and Adani Power Ltd were down over a per cent, while Adani Total Gas Ltd, Adani Energy Solutions Ltd, Adani Green Energy Ltd, and Adani Energy Solutions Ltd were trading 2-3 per cent lower.
The reports have suggested that the US government is looking into whether founder and Chairman Gautam Adani, and Adani entities or affiliates of the company were involved in bribing Indian officials for preferential treatment on energy projects.
Further, several of Adani Group’s dollar bonds fell the most in more than half a year, reacting to the news.
In the dollar bonds, a note from unit Adani Ports & Special Economic Zone Ltd due in 2041, slid 2.4 cents, the most since August, to 79.1 cents.
Another bond from subsidiary Adani Renewable Energy RJ Ltd due in 2039, fell 2.3 cents to 83 cents, the worst drop since February 2023.
That pares gains in recent months that sent the securities to their highest levels since 2022. The US Attorney’s office for the Eastern District of New York and the Department of Justice’s fraud unit were handling the investigation.
However, Adani group said it was not aware of any investigation against the firm or its founder.
“We are not aware of any investigation against our chairman,” Adani Group said in a statement. “As a business group that operates with the highest standards of governance, we are subject to and fully compliant with anti-corruption and anti-bribery laws in India and other countries,” it added.
As per the reports, the US investigators are digging into whether an Adani entity, or people linked to the company including Gautam Adani, were involved in paying officials in India for favourable treatment on an energy project, according to people with direct knowledge of the matter.
The probe, which is also looking at Indian renewable energy company Azure Power Global Ltd, is being handled by the US Attorney’s Office for the Eastern District of New York and the Justice Department’s fraud unit in Washington, said people familiar with the matter.