Adani Stocks In Focus On Monday After CFO Says, 'None Of 11 Public Companies Are In US Indictment

Adani Group Stocks: To restore faith of investors, Adani Group CFO Jugeshinder Robbie Singh on Saturday, November 23, said none of 11 public companies are subject to indictment. The port-to-power conglomerate Adani Group and its founder Gautam Adani are once again the talk of town, involving in yet another controversy in less than 3 years since Hindenburg. This time billionaire Gautam Adani is booked for alleged bribery and fraud case in the United States. Adani stocks entered into an extreme volatility scenario for the past two days.

Singh emphasized that none of issuers which is companies of Adani Group portfolio are accused wrong in the legal case against Gautam Adani in the USA.

Through his X handler, Singh said, "Adani Online has a portfolio of 11 public companies and none are subject to indictment ( ie defendants in any legal proceedings in the recent DOJ lawyer filings to a court in NYC)."

He further said that "none of the issuers ( ie companies in our portfolio or specific issuers that are subsidiaries of the public companies) are accused of any wrong doing in the said legal filing."

Giving a peak of the case, Singh said, "You would have seen a lot of news in the last 2 days," adding, "this specifically relates to one contract of Adani Green which is roughly 10% of overall business of Adani Green." In a side note, Singh said, "There is a lot more precise & comprehensive detail of this which we will elaborate on in an appropriate forum."

Singh revealed that they were aware that something was afoot ( and in Feb 2024 144a offering circular in Risk Factors we disclosed as such. He mentioned further that this was the first public issuance, of any of our portfolio companies or their subsidiaries or JV companies after our annual results of 31st March 2023.

In his closing remarks, Singh said, there is a lot of news and reports that will try to pick unrelated items and create a headline.

Lastly, he added, "My humble request is that we will respond in the fullness of time once we review in detail the matter as presented in the legal filing (Please note that no court has ruled on this and as outlined by lawyers of DOJ these are "allegations and accused have a presumption of innocence").

As per the statement of the US Attorney's Office, between approximately 2020 and 2024, the accused is alleged to have bribed Indian government officials to pay more than $265 million to obtain lucrative solar energy supply contracts with the Indian government. These were projected to generate more than $2 billion in profits after tax over an approximately 20-year period (the Bribery Scheme).

The report also revealed that on many occasions Gautam Adani personally met with an Indian government official to advance the Bribery Scheme, and the defendants held in-person meetings with each other to discuss aspects of its execution.

It was further revealed that it was during these periods that Gautam S. Adani, Sagar R. Adani and Vneet S. Jaain allegedly conspired to misrepresent the Indian Energy Company's anti-bribery and corruption practices and conceal the Bribery Scheme from U.S. investors and international financial institutions to obtain financing, including to fund those solar energy supply contracts procured through bribery.

However, it said, "The charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty."

After the news broke out, by end of November 22, all Adani stocks had lost nearly Rs 2.8 lakh crore in a single-day. After the closing bell of November 21, Adani Group's flagship company, Adani Enterprises shed nearly 23%, followed by 20% and 10% lower circuit in Adani Energy Solutions and Adani Wilmar share price. Adani Ports closed lower by 13.5%, while Adani Green Energy shares dipped by 18.80%, Adani Power shed 9.15%, Adani Total Gas declined by 10.40%, while cement stocks like ACC and Ambuja Cements fell by 7.3% and 11.98% respectively.

Noteworthily, the majority of these stocks rebounded on November 22. ACC shares surged by 3.2%, Adani Enterprises climbed 2.2%, Adani Ports soared 2.05%, Adani Total Gas jumped by 1.2%, and Ambuja Cement climbed by 3.5%.

On the other hand, Adani Green Energy stock nosedived by 8.2%, extending its fall. This followed a decline of 7% in Adani Energy Solutions, a 3.2% drop in Adani Power and a 1% dip in Adani Wilmar.

Adani Group stocks will be in focus on Monday.