Mumbai: After the drastic fall of Adani Group companies’ stocks following the US Securities and Exchange Commission indictment of Gautam Adani and Sagar Adani, executives of Adani Green Energy Ltd., and Cyril Cabanes, an executive of Azure Power Global Ltd, the shares of the conglomerate have been rising.
Global investment firm Nomura’s report on Adani Group has also boosted the investors’ sentiments. The firm described the stocks of Adani companies as the most attractive compared to other Indian corporates. It expressed confidence in the Gautam Adani–led conglomerate to weather this round of rainstorm caused by the US Department of Justice indictment because its liquidity management improved.
It may be noted that despite the US Sec storm, the big three Japanese banks – Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Banking Corporation (SMBC), and Mizuho Bank – have continued their relationship with the Adani Group.
Nomura further added that there is a possibility that the global banks might temporarily halt financing to the Adani Group after the US DoJ charges, but it is expected to resume in the long term as the case settles in.
The US Securities and Exchange Commission charged Gautam Adani and other executives of his company for conduct arising out of a massive bribery scheme. “According to the SEC’s complaint, Gautam and Sagar Adani orchestrated a bribery scheme that involved paying or promising to pay the equivalent of hundreds of millions of dollars in bribes to Indian government officials to secure their commitment to purchase energy at above-market rates that would benefit Adani green and Azure Power,” the release had mentioned.
The Adani Group had refuted the allegations, terming them ‘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.
Adani Green Energy share price jumped 7 per cent to trade at Rs 1,228.65 at 2:15 pm on December 12. Adani Energy Solutions Ltd stock rose 4 per cent to Rs 824, Adani Ports increased 2 per cent to Rs 1,260.90, Adani Enterprises went up 2.60 per cent to Rs 2,521.25, Adani Total Gas appreciated 2.45 per cent to Rs 735.25 and Adani power rallied nearly 5 per cent to Rs 545.
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Following a sharp decline after the US SEC indicted Gautam Adani and Sagar Adani, Adani Group stocks have rebounded. Nomura’s positive report highlighting the group’s improved liquidity and continued support from major Japanese banks have boosted investor confidence. While the SEC alleges a massive bribery scheme, the Adani Group denies these claims. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
