Adani Group Stocks: India’s biggest domestic institutional investor, Life Insurance Corporation of India (LIC), had their stake in seven Adani stocks plunge by about ₹9,000 crores on Thursday, November 21 when the group shares fell.
Adani Group shares dropped by up to 23% in intra-day trading after the Gautam Adani-led conglomerate owner was charged by US prosecutors in a $250m bribery case.
From the month of September 2024 shareholding pattern, the LIC had invested in seven different Adani groups of companies shareholding namely Adani Enterprises, Adani Ports and SEZ Ltd, Adani Green Energy Ltd, Adani Energy Solution Ltd, Adani Total Gas Ltd, ACC Ltd and Ambuja Cements Ltd. The insurance giant suffered an Rs 8,720 crore erasure of the value of its stakes in these companies, as per the Capital Market data.
Due to the recent correction in the stock market, the value of LIC’s holding declined by ₹2,960.23 crore in Adani Ports and ₹2,995.37 crore in Adani Enterprises. LIC’s shareholding value in Ambuja Cement declined by ₹822.34 crore.
Moreover, in Adani Total Gas, LIC has eroded ₹462.80 crore, in Adani Energy Solution ₹716.50 crore have eroded in Adani Green Energy ₹571.64 crore have eroded in ACC ₹191.09 crore have eroded.
Bribery Charges Against Adani
A report in Reuters quoting U.S. authorities stated that Adani and seven others including his nephew Sagar Adani admitted to paying around $ 265 million in bribes to secure contracts expected to earn $ 2 billion in profits over 20 years for developing what is proposed to be the largest solar power project in India.
“Today a five-count criminal indictment was returned in federal district court in Brooklyn: Gautam S.Adani, Sagar R. Adani et al the CEO and president of an Indian Renewable Energy Company (the Indian Energy Company) were indicted for securities fraud in connection with conspiracy to commit fraud about assets of US investors and others including wire fraud and securities fraud in connection with obtaining billions of dollars from US investors and financial institutions based on misrepresentations,”
Adani Stocks In Freefall
After these accusations, the listed firm of flagship Adani group namely Adani Enterprises lowered as much as 23.44 per cent and Adani Ports as 13.23 per cent. Adani Energy Solutions ended locked at the lower circuit 20 per cent of its lower circuit.
Adani Group’s renewable energy arm Adani Green Energy dipped by 19 per cent and other subsidiaries including Adani Total Gas, Adani Power and Adani Wilmar also fell 10 per cent each. Of the misleading firms, Ambuja Cement fell 8.11 per cent, ACC fell 6.61 per cent and Sanghi Industries fell 12.71 per cent on the NSE while NDTV was flat with a positive tilt.
The seven companies that are part of the Adani group saw their m-cap decline by ₹2.24 lakh crore today.
This indictment is has emerged nearly two years after the American short-seller firm, the Hindenburg Research produced a damning report that accused the Adani group of employing tax havens inappropriately and stock manipulation which the conglomerate has dismissed.
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