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India's Adani Group Conglomerate Saw A Dramatic Decline In Market Value On Thursday. The Group Lost As Much As $34 Billion Following Charges Of Bribery And Fraud Against Its Chairman, Gautam Adani.

Adani Enterprises Faces Sharp Decline

Adani Enterprises, The Group’s Flagship Company, Tumbled By 23%. This Marked Its Lowest Point Since November 2023. It Was The Worst One-day Drop For The Company Since February Last Year. Other Adani Group Companies, Like Adani Ports, Adani Total Gas, Adani Green, And Adani Power, Also Experienced Significant Losses. These Stocks Dropped Between 6% And 19%.

Adani Group's Market Value Takes A Hit

The Market Capitalization Of The 10 Adani-backed Companies Fell Sharply To $147 Billion. This Was Down From $169.08 Billion Earlier In The Week. The Loss Of Market Value Raised Concerns Among Investors, Especially As The Group Faces Legal Issues.

Investor Reactions To Legal Accusations

"Investors Usually Avoid Stocks When Corporate Governance Is In Question," Said Saurabh Jain, A Retail Equities Analyst At SMC Global Securities. He Noted That Investors Are Likely To Avoid Adani Group Stocks Until There Is More Clarity. Adani Group Has Rejected The Accusations As Baseless. The Company Plans To Seek All Possible Legal Recourse.

Previous Scrutiny Of Adani Group

This Isn’t The First Time Adani Group Has Faced Scrutiny. In 2023, U.S. Short-seller Hindenburg Research Accused The Group Of Using Tax Havens And Engaging In Stock Manipulation. Adani Denied These Allegations As Well.

Details Of The U.S. Indictment

U.S. Authorities Charged Gautam Adani And Seven Other Defendants, Including His Nephew Sagar Adani. The Charges Relate To A Bribery Scheme Involving $265 Million. The Bribes Were Allegedly Paid To Indian Government Officials In Exchange For Contracts. These Contracts Were Expected To Generate $2 Billion In Profit Over 20 Years. One Of The Key Projects Involved Developing India’s Largest Solar Power Project.

Financial Troubles 

The Indictment Has Led To Further Financial Troubles. Adani Green Energy, A Key Group Company, Canceled Its Plans To Raise $600 Million In U.S. dollar -denominated Bonds. The Bonds Had Been Priced But Were Withdrawn After The News Of The Indictment Broke.

"The Group Faces Growing Challenges In Accessing Global Capital Markets," Said Narinder Wadhwa, Managing Director At SKI Capital. He Explained That The Group’s Defensive Posture Indicates An Effort To Manage Damage Amid Heightened Scrutiny.

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