The Adani Group faces fresh allegations of bribery and fraud, adding to a tumultuous year marked by accusations from Hindenburg Research and global scrutiny. Despite the challenges, the share prices of Adani Group companies show resilience. Big investors announced their support. However, things are not looking too good for the Adani Group. Investors should be very cautious in view of the allegations.
Key Points:
- Bribery Allegations: On November 20, 2024, the US SEC charged Gautam Adani and others with a $250M bribery scheme to secure solar contracts. On the same day, the US DOJ announced an indictment against Gautam Adani and others. Adani Group denies FCPA violations and claims charges are baseless.
- Stock Surge: The shares of the Adani Group companies showed a strong performance over the current trading week despite mounting legal issues. Big investors expressed their support for the group.
- Global Scrutiny: Investigations into offshore shell companies, money laundering, and alleged bribery expand across multiple jurisdictions.
- Past Troubles: From Hindenburg’s scathing reports to canceled deals in Kenya and Bangladesh, the group’s challenges pile up.
Short Investor Briefing:

The Adani Group‘s troubles continue to snowball. Following the damning Hindenburg Research reports alleging stock manipulation and money laundering, the US SEC and DOJ have now implicated Gautam Adani in a massive bribery scheme. Despite these allegations, shares of the Adani Group showed surprising resilience, reflecting investor faith or strategic market maneuvers. While the shares of Adani Enterprises plummeted after the SEC and DOJ announcement, they have recovered somewhat in the last 5 days.
Shares of other Adani Group companies also continued their strong performance on Friday, November 29, for the third day. Adani Green Energy Limited led the pack, with its share price surging 9% in the morning trade. Other group companies also saw significant gains, including Adani Total Energy Solutions, which gained up to 8%, and Adani Total Gas, which rose 5%. Adani Power followed closely with a similar increase.
The group has faced challenges globally, from stalled projects in Kenya and Bangladesh to protests over the Dharavi redevelopment in Mumbai. While Adani denies all allegations, the international spotlight remains relentless.
However, the International Holding Company (IHC), an investment arm of Abu Dhabi’s ruling family, became the second significant investor after CQG Partners to reaffirm its confidence in the Adani Group.
Actionable Insight:
The Adani Group’s legal and financial challenges highlight the growing impact of regulatory scrutiny on multinational corporations. Investors should remain cautious, as ongoing investigations could lead to further volatility in Adani stocks. The recent resilience of Adani Enterprises‘ stock price amid allegations suggests either strong market positioning or insider confidence. However, the long-term risks associated with unresolved allegations, global protests, and stalled projects are substantial.
For short-sellers, the current situation may present opportunities but tread carefully given the volatility and legal risks involved.
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