Shares in Adani Group companies, including Adani Green Energy, have surged sharply, signaling a positive recovery from the turmoil triggered by a US indictment.
On Friday, Adani Green Energy witnessed a significant 19% increase, marking a continued rebound after suffering heavy losses earlier this month.
The stock has managed to recover most of the losses it endured during its worst trading day in six months on November 21, when it plummeted by more than 18%.
The recent gains come after the group issued a statement vehemently denying bribery charges levied against its billionaire chairman, Gautam Adani, as part of a US legal investigation.
Adani is accused of paying over $250 million in bribes
The spike in Adani Green Energy’s stock comes amid ongoing legal challenges that have rattled investor confidence.
Last week, Adani and seven other defendants were indicted in a US federal court over their alleged involvement in an extensive bribery and fraud scheme.
According to the charges, Adani is accused of paying over $250 million in bribes to Indian government officials to secure solar energy contracts worth more than $2 billion in potential profits.
The charges also claim that Adani misled US and international investors about the company’s adherence to anti-bribery and anti-corruption standards while raising funds for energy projects.
Despite the serious nature of the indictment, Adani Group’s stock has seen a cautious recovery, driven by renewed optimism among investors.
On Wednesday, Adani Green Energy issued a statement clarifying that neither Gautam Adani nor his nephew, Sagar Adani, had been charged with any violations under the US Foreign Corrupt Practices Act (FCPA).
This assurance helped lift the stock by 10%, while other group stocks, such as Adani Enterprises, also gained traction, rising by 11.5%.
Adani Group companies stocks recover
The upward movement in Adani Green Energy’s stock is part of a broader recovery for Adani Group companies.
Adani Energy climbed 14.4%, and Adani Total saw a 7.2% rise, bringing its total gains to 43% since the initial sell-off triggered by the US indictment.
The group had faced widespread sell-offs, with investors pulling back funds and partners distancing themselves from ongoing contracts.
Even major partners, such as TotalEnergies, announced suspensions of new investments in the group.
Additionally, Fitch Ratings placed several of Adani Group’s dollar bonds on a negative watchlist.
Investors will likely keep a close eye on the resolution of the ongoing legal challenges, with a focus on Adani Group’s steps to enhance transparency and restore investor confidence.
As the legal case against Adani Group continues to unfold, market participants will be watching closely for any further developments.
The recovery in Adani Green Energy’s stock may signal a stabilizing of investor sentiment, but the outcome of the US legal proceedings remains a crucial factor for the group’s prospects.
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