Adani Enterprises falls 3%, Adani Green Energy slips 4%: Why Adani Group stocks are under pressure on Monday

Adani Group stocks were trading lower on Monday, June 29, following a fresh development in the case involving founder Gautam Adani.

“The judge’s order is procedural,” lawyer Chris Man said. Under Rule 48(a), the Department of Justice must obtain leave of court to dismiss an indictment, and judges can ask questions or seek additional briefing before ruling. “That, by itself, is not unusual,” he said.

The lawyer added that there is little precedent for a federal court compelling prosecutors to continue pursuing a criminal case once the Justice Department has decided it should be dismissed.

Judges “have little discretion,” he said. “There is effectively no modern precedent for a judge forcing the Department of Justice to prosecute a case that the executive branch has determined should be abandoned,” he said.

The conduct of criminal prosecutions is constitutionally an executive function, and courts have historically accorded substantial deference to prosecutorial charging and dismissal decisions.

The comments came after the judge overseeing the Adani case directed the Justice Department to provide a more detailed explanation for its request to dismiss the indictment.

Brooklyn-based US District Judge Nicholas Garaufis had stated that federal prosecutors' May 18 announcement that they would no longer pursue the case, which charged Adani with securities fraud and wire fraud stemming from an alleged bribery scheme, did not sufficiently explain their decision.

How Adani Group stocks are performing

Adani Enterprises shares were down 3% to an intraday low of ₹2,955.40 apiece on the NSE, while Adani Ports and Special Economic Zone fell 1.3% to an intraday low of ₹1,772.50 per share.

Adani Power shares declined 2.6% to ₹224.53, while Adani Green Energy stock was trading 4% lower at ₹1,469.30 apiece on the NSE.

Adani Energy Solutions was trading at ₹1,465, down 3% on the NSE, while Adani Total Gas shares lost 3% to today's low of ₹698.2 on the NSE.

Shares of Ambuja Cements and ACC were trading flat up at the time of writing the article.

Here are some recent updates from the group

Adani Green Energy flags off 150 MW solar power project in Gujarat

Adani Green Energy (AGEL) operationalised its 150 megawatt (MW) solar power project at Khavda, Gujarat, over the weekend, according to an exchange filing. In the exchange filing, the company also said that with the 150 MW capacity operationalisation to its existing capacity, Adani Green Energy’s total operational renewable generation capacity hit 19,985.8 MW, or nearly 20 gigawatts (GW).

The firm also disclosed that the total operational Battery Energy Storage Systems (BESS) capacity of the company was 3,366 megawatt hours (MWh), as per the latest filing.

Adani Airport to invest ₹20,000 crore in airport city projects

Adani Airport plans to invest more than ₹20,000 crore in the first phase of a large-scale airport city development programme spanning over 655 acres across six airports in five states, as the company seeks to transform its aviation hubs into integrated commercial and urban destinations.

The development by Adani Airport City Ltd (AACL)—a wholly-owned subsidiary of Adani Airport Holdings Limited (AAHL), India's largest private airport operator—will cover airports in Mumbai, Navi Mumbai, Ahmedabad, Lucknow, Jaipur and Guwahati, with around 22 million square feet of mixed-use infrastructure planned in the initial phase.

Nearly 70% of the investment will be concentrated in Mumbai and Navi Mumbai, where the company controls close to 440 acres of land, reflecting the strategic importance of the Mumbai Metropolitan Region as India's largest aviation and commercial hub.

S&P upgrades Adani Ports

Last week, S&P Global Ratings upgraded Adani Ports and Special Economic Zone (APSEZ) to investment-grade BBB from BBB-, citing its robust cash generation, strengthening balance sheet, and ability to fund an ambitious expansion plan while maintaining healthy leverage.

The rating agency assigned a stable outlook on APSEZ, reflecting the expectation that the company will sustain strong operating performance over the next 12-24 months and keep its net debt-to-EBITDA ratio at around 2.6 times despite elevated capital spending.

Targets 10 GW nuclear power capacity by 2035

The Adani Group plans to build 10 gigawatts (GW) of nuclear power capacity by 2035, Chairman Gautam Adani said on June 24, marking the conglomerate's entry into atomic energy as it expands an integrated power platform spanning thermal, renewable, hydro, gas and transmission assets.

Addressing shareholders at the group's AGM, Adani said land had been identified for the nuclear venture, Adani Atomic Energy, which he described as a key part of the group's strategy to support India's long-term energy security amid growing geopolitical uncertainty and rising electricity demand.