Shares of Adani Enterprises nosedived 10% on Thursday following allegations by US prosecutors against founder Gautam Adani for paying over $250 million in bribes to Indian officials.
The bribes reportedly secured lucrative solar energy contracts projected to yield over $2 billion in post-tax profits over 20 years.
The fallout extended across the Adani Group’s key businesses, with Adani Power shares tumbling 11% and Adani Energy Solutions plummeting 20%.
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Despite the accusations, none of the defendants, including Adani, have been taken into custody. The Adani Group has yet to issue a response.
The billionaire tycoon, known for his close ties with Indian Prime Minister Narendra Modi, faces escalating scrutiny.
Opposition leader Jairam Ramesh of the Congress Party called the indictment a vindication of their demand for a parliamentary inquiry, accusing the Securities and Exchange Board of India (SEBI) of failing to address alleged financial misconduct.
The Adani Group, spanning industries like coal, airports, cement, and media, has faced controversies. In 2023, a damning report by short-seller Hindenburg Research accused the conglomerate of long-standing stock manipulation and accounting fraud.
The report led to a $150 billion market value erosion and raised questions about government leniency.
Born in Ahmedabad, Gujarat, Adani rose from modest beginnings. At 16, he dropped out of school to work in Mumbai’s gem trade before founding his conglomerate in 1988.
