Adani Green Energy’s statement yesterday, denying bribery allegations against Gautam Adani and other corporate leaders, caused Adani Group shares to rise to 15% for the second consecutive day on Thursday, November 28.
The price of Adani Total Gas shares led the increase, soaring to 15% in Thursday morning trading. Adani Power’s share price increased by up to 9%, while Adani Green Energy and Adani Energy Solutions’ share prices increased by about 10% each.
Adani Wilmar, Adani Enterprises, and Adanrts and Spe,cial and Special Economic Zone had gains of up to 5%. Ambuja Cements, ACC, and New Delhi Televisions were among the other group companies that had a 2% increase.
Adani group shares witnessed a sharp rebound after Adani Green Energy issued clarifications yesterday, stating that “Gautam Adani, Sagar Adani and Vineet Jain have not been charged with any violation of the FCPA (United States Foreign Corrupt Practices Act) in the counts outlined in the indictment of the US DOJ (United States Department of Justice) or civil complaint of the US SEC (U.S. Securities and Exchange Commission)”
The business further stated that these directors are accused of three crimes in the criminal indictment: (i) conspiracy to commit securities fraud, (ii) conspiracy to commit wire fraud, and (iii) conspiracy to commit securities fraud.
Shares of Adani Group increased by as much as sixteen per cent on Wednesday.
In addition, the feeling was strengthened by International Holding Co’s (IHC) projection for the group. According to a Reuters article, IHC’s position on investments in the Abu Dhabi conglomerate Adani Group in India has not altered.
“Our partnership with the Adani Group reflects our confidence in their contributions to the green energy and sustainability sectors. As with all our investments, our team continues to evaluate relevant information and developments. At this time, our outlook on these investments remains unchanged,” it said.
Ratings Action on Adani Group Companies
Fitch Ratings confirmed the rating at “BBB-” but placed Adani Green Energy’s US dollar senior unsecured notes and Long-Term Foreign-Currency Issuer Default Rating on Rating Watch Negative in response to the US authorities’ action.
ICRA Limited has maintained that the company’s commercial paper is rated [ICRA] A1+, its long-term fund-based/non-fund-based limits and non-convertible debentures are rated [ICRA] AAA; Stable.
India Ratings & Research has confirmed that the company’s commercial paper and short-term bank loans are rated as IND A1, while its non-convertible debentures and long-term bank loans are rated as IND AAA/Stable.
While maintaining its investment grade rating of “Baa3,” Adani Ports also said in its release that Moody’s Ratings had changed its outlook to negative.
