Adani’s Wealth Plunges $12.3 Billion Amid U.S. Indictment-Fueled Stock Crash

The Adani Group, one of India’s largest conglomerates, experienced a sharp decline in the stock market on Thursday following the indictment of its billionaire founder, Gautam Adani, by U.S. prosecutors. The charges, which include allegations of bribery to secure energy contracts, have sent shockwaves through global markets and significantly impacted Adani’s net worth.

Key Developments

• Stock Market Impact:

  • Adani Enterprises, the group’s flagship company, saw its shares plunge by 21.55% to $26.22 (₹2,213.60).
  • Adani Green Energy, directly implicated in the indictment, fell by 17.57% to $13.79 (₹1,164.45).
  • Other listed firms also faced significant declines:
    • Adani Power dropped nearly 11.5%.
    • Adani Ports fell over 17.5%.
    • Adani Energy Solutions slumped by 19%.
    • Adani Total Gas dipped by almost 13%.
    •  

• Bond Sale Cancellation:
  Adani Green Energy canceled its planned $600 million bond offering following the indictment. The company stated in a regulatory filing with the Bombay Stock Exchange:
  “In light of these developments, our subsidiaries have presently decided not to proceed with the proposed USD denominated bond offerings.”

Forbes Valuation

Gautam Adani’s net worth has plunged by $12.3 billion, reducing his total wealth to $57.5 billion, according to Forbes’ Real-Time Billionaires list. This drop moves Adani from the 22nd to the 25th position globally, although he remains the second-richest Asian, trailing fellow Indian billionaire Mukesh Ambani.

Indictment Details

The U.S. Department of Justice charged Adani, along with Adani Green Energy CEO Vneet Jaain and Executive Director Sagar Adani, with conspiracy to commit securities and wire fraud.

• The case centers around an alleged bribery scheme involving $250 million paid to Indian government officials to secure billion-dollar energy supply contracts.
• The Securities and Exchange Commission (SEC) also accused Adani and his executives of violating antifraud provisions, alleging they raised $175 million from U.S. investors through false and misleading statements.

Historical Context

This isn’t the first time Adani’s business empire has faced scrutiny. In 2022, activist short-seller Hindenburg Research accused the Adani Group of “brazen stock manipulation and accounting fraud.” Although the company denied the allegations and framed them as an attack on Indian institutions, the revelations led to a political uproar in India. Opposition leaders questioned Prime Minister Narendra Modi’s long-standing ties to Gautam Adani, putting additional pressure on the conglomerate.

Global Implications

The latest indictment and subsequent market fallout highlight the increasing scrutiny faced by global corporations operating across jurisdictions. Adani’s case serves as a stark reminder of the consequences of alleged misconduct on financial markets and investor confidence worldwide.

Conclusion

As the Adani Group grapples with legal challenges and market volatility, the long-term implications for the Indian business titan and his conglomerate remain uncertain. Global World Citizens will be watching closely as this story unfolds, examining the broader impact on international trade, investment, and governance standards.

For more updates on this and other global economic developments, visit GlobalWorldCitizen.com.