What's Going On With Adani Stocks After Group Denies U.S. Probe?

Shares of Adani Group companies were in the red on Tuesday despite the conglomerate denying reports that the U.S. Department of Justice had expanded its investigation of the Gautam Adani-led group.

What Happened: The Adani Group said in an exchange filing that a media report suggesting a probe by the U.S. Department of Justice (DOJ) regarding alleged bribery activities by the firm was false.

The entities, including Adani Ports and Special Economic Zone, Adani Enterprises, ACC, Ambuja Cements, Adani Power, Adani Total Gas, Adani Wilmar, New Delhi Television and Adani Energy Solutions, clarified that they had not received any notices from the DOJ regarding the allegations mentioned in the reports.

Bloomberg had previously reported a widening of the DOJ’s investigation into the Adani Group, citing sources with direct knowledge.

The focus of the probe purportedly included scrutinising whether an Adani entity had engaged in bribery, along with assessing the conduct of Adani, the billionaire founder of the conglomerate.

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This investigation, which also involved Indian renewable energy company Azure Power Global Ltd, was reportedly being handled by the U.S. Attorney's Office for the Eastern District of New York and the Justice Department's fraud unit in Washington.

Staunch Denial: The Adani Group issued a statement on Monday, asserting that it was unaware of any investigation targeting its chairman. Emphasising their commitment to operating with the highest standards of governance, the group reiterated compliance with anti-corruption and anti-bribery laws both in India and other countries.

Following the circulation of these reports, there were notable market reactions. Several of Adani Group's dollar bonds and shares experienced significant declines, marking the most substantial drop observed in over a year.

Price Action: Most Adani Group stocks gave up early gains on Tuesday to trade in the negative zone around noon.

ACC was down 1.05% at ₹2,415.90

Adani Energy Solutions was trading almost flat at around ₹1,008.60

Adani Enterprises fell 1.27% to ₹3,072.15

Adani Green Energy dropped 2.24% to ₹1,828

Adani Ports and Special Economic Zone eased 1.45% to ₹1,248.20

Adani Power lost 2.15% to trade at ₹518

Adani Total Gas shed 0.65% to trade at ₹941.10

Adani Wilmar was down up 0.39% to ₹336.10.

NDTV dropped 0.89% to ₹212.10

Ambuja Cement’s shares were down 1.30% to trade at ₹577.05.

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