Adani Green Energy close 9.2% lower after TotalEnergies suspend fresh investments in the Adani Group

TotalEnergies said in a release on November 25 that it will not make any new financial contribution as part of its investments in the Adani group companies till the accusations against the Adani group individuals and their consequences have been clarified.

Earlier in January 2021, TotalEnergies acquired a 19.75% stake in Adani Green Energy Limited to enhance its renewable energy portfolio in India. The company also acquired a 50% stake in three joint ventures with Adani Green Energy – AGEL23 in 2020, AREL9 in 2023, and AREL64 – in 2024.

TotalEnergies also said that it rejects corruption in any form and it is not targeted nor involved in the facts described by the indictment made against individual Adani group executives in the United States.

“Until such time when the accusations against the Adani group individuals and their consequences have been clarified, TotalEnergies will not make any new financial contribution as part of its investments in the Adani group of companies. TotalEnergies recalls that its investments in Adani’s entities were undertaken in full compliance with applicable laws and with TotalEnergies’ own internal governance processes pursuant to due diligence and representations made by the sellers. In particular, TotalEnergies was not made aware of the existence of an investigation into the alleged corruption scheme,” the French energy major said.

Earlier on November 20, US prosecutors charged Gautam Adani and other executives of the Adani Group with orchestrating a $250 million bribery scheme. Gautam Adani’s nephew, Sagar Adani, and several associates were also indicted by the US Department of Justice (DoJ). The prosecutors alleged that the bribery scheme aimed to secure contracts for solar power projects in India. The Securities and Exchange Commission (SEC) has also filed a civil suit against Gautam Adani and his nephew and a third individual. The Adani Group has strongly denied the allegations and called them “baseless”.

On Monday, Adani Group stocks such as ​Adani Enterprises​, ​Adani Ports​ & SEZ, ​ACC, ​Ambuja Cement​ and ​Adani Wilmar​ closed higher by up to 2.65% as investors showed confidence that the conglomerate is likely to have substantial grounds to contest the indictment in the US court.

Following Total Energies' announcement, shares of Adani Energy Solutions, Adani Power, Adani Total Gas, and NDTV closed lower by up to 4.15%.

Shares of Adani Green Energy Ltd declined the most, closing lower by 9.2% at ₹955 apiece on the NSE.