Adani Group shares recover most of last week’s losses: here’s a look at a timeline of events

Adani Group shares have recovered most of the losses suffered since the indictment of Gautam Adani and other group executives in the United States last week.

Adani Group shares added ₹1.7 lakh crore in market capitalization over the past week, with most companies posting gains of 10% to 30% during the week.

Here’s a look at the key events from the last 10 days:

November 20: Indictment and civil lawsuit

Earlier on November 20, US prosecutors from the Department of Justice (DoJ) accused Gautam Adani and Adani Group executives of masterminding a $265 million bribery scheme. Sagar Adani, Gautam Adani’s nephew, and several associates of the company were also charged. U.S. prosecutors said the bribery scheme was aimed at securing contracts for solar energy projects based in India.

Additionally, the Securities and Exchange Commission (SEC) also filed a civil suit against Gautam Adani, his nephew, and a third individual.

November 21: Adani shares fall

Indian markets responded to the news on November 21 and reflected negative sentiment as shares of all Adani Group companies closed with losses of up to 23.5%. As much as ₹2.3 lakh crore was wiped from the total market capitalization of Adani Group companies after the allegation. Adani Enterprises Ltd. emerged as the biggest loser among stocks of Adani Group companies with a fall of 22.61%. Adani Green Energy and Adani Ports also closed lower by 18.8% and 13% respectively. Other major shares of the Adani Group also fell in the range of 10-20%.

November 21: Adani Group calls allegations ‘baseless’

Following the accusation by the US Department of Justice, the Adani Group denied the allegations and called them “baseless” on November 21. The company stated its commitment to maintaining the highest standards of governance in the statement.

“The Adani Group has always advocated and is firmly committed to maintaining the highest standards of governance, transparency and regulatory compliance in all jurisdictions of its operations. We assure our stakeholders, partners and employees that we are a law-abiding organization and fully comply with all laws,” the Adani Group said.

November 25: Total Energies stops its investments

On Monday, November 25, French multinational Total Energies said in a statement that it had suspended investments in Adani Group companies following the allegation. The company stated that no new investments will be made until the accusations against the members of the group and their consequences are clarified. TotalEnergies holds a 19.75% stake in Adani Green Energy as of the quarter ended September.

On November 26, Adani Green Energy informed the exchanges that it did not have any new financial commitments under discussion with TotalEnergies and that the company’s plan was not likely to have any material impact on its operations or growth plan.

Nov 25: GQG Capital backs Adani Group

US firm GQG Partners backed the Adani Group and said the bribery allegations against the Adani Group will not have a material impact on the company’s business. Rajiv Jain-led GQG Partners also said its investment thesis on Adani Group companies remained unchanged.

GQG’s exposure to Adani Group companies reportedly amounted to $9.7 billion, representing approximately 6.1% of its total assets as of November 20. The GQG group started investing in Adani shares during the Hindenburg crisis in March 2023. Currently, the company has investments in six Adani Companies, including Adani Enterprises, Adani Ports and Adani Green Energy. The company also claimed that the Adani Group companies are independently run companies with different customers and revenue streams and that the allegation is against the employees and not the company.

November 27: IHC Dubai expands support

After GQG Capital kept its opinion on the Adani Group companies unchanged, International Holding Co (IHC) also shared its opinion on the group companies. On November 27, IHC Dubai said its outlook on investments in the Adani Group remained unchanged.

“Our partnership with the Adani Group reflects our confidence in their contributions to the green energy and sustainability sectors,” IHC said in a statement.

November 27: Clarification from Adani Group

On November 27, a week after the US Department of Justice filed charges against the conglomerate, the Adani Group issued a clarification stating that the group and its executives, Gautam Adani and Sagar Adani, have not been charged with violations of the U.S. Foreign Corruption Act (FCPA) over bribery, nor has the civil suit filed by the U.S. Securities and Exchange Commission (SEC) been based on this.

The group said in its clarification that they have been charged with three counts in the criminal indictment: securities fraud conspiracy, wire fraud conspiracy and securities fraud.

In a stock exchange filing, Adani Green said a complaint from the U.S. regulator, the Securities and Exchange Commission (SEC), sought “an order directing defendants to pay civil monetary penalties (but) does not quantify the amount of the fine.”

The civil action brought by the SEC runs parallel to the indictment by US federal prosecutors against Adani and others.

In Friday’s trading session, Adani Group shares rose for the third consecutive day, with Adani Total Gas, Adani Green Energy and Adani Energy Solutions entering the futures and options segment. Adani Green Energy posted its first weekly profit since September, while Adani Energy Solutions gained more than 30% for the week.