ven as other Adani Group stocks ended with gains on Monday, Adani Green Energy shares plunged by over 9% or Rs 97 per share to Rs 955 on the NSE. The debacle followed TotalEnergies SE announcement that it will not make any new financial contribution as part of its investments into the Adani Group companies amid a US federal indictment against Chairman Gautam Adani and his nephew Sagar R Adani.
“Until such time when the accusations against the Adani group individuals and their consequences.
TotalEnergies SE holds a total stake of 19.75% in Adani Green Energy through Totalenergies Solar Wind Indian Ocean Ltd (3.55%) and Totalenergies Renewables Indian Ocean Ltd (16.20%).
The US Securities and Exchange Commission has charged billionaire Gautam Adani, founder and chairman of the Adani Group, with allegedly defrauding American investors and bribing officials.
In the indictment, the US agency has also named several states including Odisha, Andhra Pradesh, J&K, Tamil Nadu, and Chhattisgarh.
“Following the promise of bribe to Indian government officials, in or about and between July 2021 and February 2022, electricity distribution companies for the states and regions of Odisha, Jammu and Kashmir, Tamil Nadu, Chhattisgarh and Andhra Pradesh entered into PSAs with SECI under the manufacturing linked project,” the US SEC said in the indictment.
It said Sagar R Adani used his phone to track the bribe notes that identified the per megawatt rate of bribe given to government officials.
The SEC alleged that the bribery scheme was orchestrated to enable renewable energy companies Adani Green and Azure Power to capitalise on a multi-billion-dollar solar energy project awarded by the Indian government.
During the alleged scheme, Adani Green raised more than USD 175 million from US investors and Azure Power’s stock was traded on the New York Stock Exchange, the SEC said in a statement.
In response to recent allegations from the US Department of Justice (DOJ) and the US Securities and Exchange Commission (SEC) against directors of Adani Green, the Adani Group has strongly denied the claims. A spokesperson for the company stated that the accusations are baseless and reaffirmed the group’s commitment to upholding the highest standards of governance and regulatory compliance.
The stock has been on a declining curve even before the indictment news surfaced. Today’s fall was the fifth in a row and the stock has corrected by 36% during this time.
Source: By Shivendra Kumar from economictimes.indiatimes.com