Shares of all 11 listed Adani Group companies rallied, led by Adani Green Energy, which soared nearly 15 per cent on the BSE. The surge comes amidst continued backing from key international stakeholders despite recent allegations surrounding the conglomerate’s founder.
Market Performance
Adani Green Energy shares rose 14.64 per cent, followed by Adani Energy Solutions, which surged 13.54 per cent. Other notable gainers included:
Adani Total Gas: Up 7.33 per cent
Adani Power: Up 4.90 per cent
NDTV: Up 4.54 per cent
Ambuja Cements: Up 2.90 per cent
Sanghi Industries: Up 2.44 per cent
Adani Ports: Up 2.25 per cent
Adani Wilmar: Up 2.24 per cent
Adani Enterprises: Up 2.11 per cent
ACC: Up 1.34 per cent
The strong rally underscores investor confidence in the group despite recent challenges.
Support from Key Investor IHC
Abu Dhabis International Holding Company (IHC), one of Adani’s largest foreign investors, reaffirmed its commitment to the group. The sovereign fund, managing assets worth close to $100 billion, stated that its outlook on Adani Group investments remains unchanged. “Our partnership with Adani Group reflects our confidence in their contributions to the green energy and sustainability sectors,” IHC said in a statement. The fund also highlghted ongoing evaluation of relevant developments but maintained its positive stance.
Allegations and Legal Developments
The reaffirmation follows allegations by the US Department of Justice (DoJ), which filed charges against Adani Group executives, including securities and wire fraud, in a New York court last week. The indictment, however, does not accuse Gautam Adani, the group’s founder and chairman, of violating the US Foreign Corrupt Practices Act (FCPA).
Adani Green Energy Ltd (AGEL), at the center of bribery allegations involving $265 million, denied any wrongdoing. The group described the charges as “baseless” and vowed to pursue legal recourse.
Global Support for Adani Group
Several international partners have also expressed confidence in their collaborations with Adani Group:
Sri Lanka Ports Authority affirmed its trust in Adani’s contributions to expanding port infrastructure in the country.
Tanzanian Government reiterated its commitment to ongoing agreements with Adani Ports, confirming compliance with local laws.
In May 2024, Tanzania finalised a 30-year concession agreement with Adani Ports to operate Container Terminal 2 at Dar es Salaam port, a key project under the partnership.
Adani Group’s Statement
The group has consistently denied all allegations, maintaining that its operations and projects comply with applicable laws. “We are confident in our business practices and the integrity of our leadership,” the company reiterated in a recent filing. The market’s positive reaction and the show of international support bolster Adani Group as it seeks to navigate through legal and reputational challenges.