Adani Group stocks reverse losses; Adani Enterprises surge nearly 5% recovering from yesterday’ fall

Adani Group shares reversed their early morning losses to trade in green after falling up to 23% in the previous session on bribery charges and reports of Kenya cancelling deals with the group. Yesterday’s fall dragged down the group’s market valuation by nearly ₹2.2 lakh crore.

*Stock prices as of 1:30 pm

After the bribery charges, Kenyan President William Ruto announced that he has cancelled multi-million dollar deals, including an airport expansion project and energy deals, with Adani Group following the indictment of group chairman Gautam Adani and others for a $265 million bribery scheme.

Another blow to the Adani Group came from S&P Global Ratings, which revised its outlook on three Adani Group entities—Adani Electricity Mumbai Ltd, Adani Ports and Special Economic Zone Ltd, and Adani Green Energy Ltd Restricted Group 2 (AGEL RG2)—to negative.

The rating agency affirmed the ratings on these entities. However, it warned that their cash flows could be materially impacted if the allegations are proven, their funding costs rise, or funding access weakens.

Meanwhile, Adani Group has rejected the charges as baseless.

"The allegations made by the US Department of Justice and the US Securities and Exchange Commission against directors of Adani Green are baseless and denied," the group spokesperson said in a statement.

"The Adani Group has always upheld and is steadfastly committed to maintaining the highest standards of governance, transparency and regulatory compliance across all jurisdictions of its operations. We assure our stakeholders, partners and employees that we are a law-abiding organisation, fully compliant with all laws," the spokesperson added.

US prosecutors have charged that Gautam Adani, Adani Green director Sagar Adani, and six others paid bribery and committed fraud in securing renewable energy projects in Indian states Andhra Pradesh and Odisha. Kickbacks were paid to Indian officials for favourable policy terms that helped secure deals for Adani group companies.