Adani shares crack up to 8% on Fitch downgrade; Green, Energy at 52-wk lows

In the past one week, the market price of Adani Green Energy and Adani Energy Solutions tanked 37 per cent and 32 per cent, respectively.

Shares of Adani Group companies were under selling pressure, falling up to 8 per cent on the BSE in Tuesday’s intra-day trade after seeing some recovery on Monday from previous week lows.

 

Adani Green Energy, ACC, Adani Energy Solutions, Adani Enterprises, Adani Power, Adani Total Gas, Adani Wilmar and Adani Ports and Special Economic Zone and Ambuja Cements were down 2 per cent to 8 per cent on the BSE in intra-day trade today. In comparison, the BSE Sensex was down 0.09 per cent at 80,034 at 10:30 am.

 

Shares of Adani Green Energy (down 8 per cent at Rs 893) and Adani Energy Solutions (down 5 per cent at Rs 593.15) hit their fresh 52-week lows.  In the past one week, the market price of these companies have tanked 37 per cent and 32 per cent, respectively.

 

 

On November 21, Adani Green Energy in an exchange filing said the United States Department of Justice (DoJ) and the United States Securities and Exchange Commission (SEC) have issued a criminal indictment and brought a civil complaint, respectively, in the United States District Court for the Eastern District of New York, against our Board members, Gautam Adani and Sagar Adani. 

 

The United States Department of Justice also included our Board member, Vneet Jaain, in such a criminal indictment. In light of these developments, our subsidiaries have presently decided not to proceed with the proposed USD denominated bond offerings, the company said.

 

However, the Adani Group has strongly rejected the allegations made by the US SEC and the US DoJ, regarding charges of fraud and bribery involving several key figures from the conglomerate. In a statement, the group described the allegations as “baseless and denied.”

 

Meanwhile, Fitch Ratings has revised the outlook on four Adani Group entities to "Negative" and placed three entities under "Rating Watch Negative" (RWN) following bribery charges and the indictment of certain board members of Adani Green Energy by the US SEC and DoJ. CLICK HERE FOR FULL REPORT

 

In another development, French energy giant TotalEnergies on Monday announced a pause on new investments citing corruption allegations by the US SEC, while Florida-based GQG Partners expressed its confidence in the group, emphasising the sound fundamentals of its investments.

 

“Until such time when the accusations against the Adani group individuals and their consequences have been clarified, TotalEnergies will not make any new financial contribution as part of its investments in the Adani group of companies,” said the French company.

 

However, Adani Green Energy clarified that there is no new financial commitment under discussion with TotalEnergies. Hence, the Press Release will not have any material impact on the company’s operations or its growth plan. Accordingly, there is no material impact of the media report and the press release on the company at this stage, the company said.

 

Meanwhile, in a statement on Monday, GQG Partners said that any coercive action by Indian regulators is unlikely and that the Indian government will maintain its support to Adani as he is the “most important infrastructure developer” in the country.

 

“…It is unlikely that Indian regulators will take action in this matter given the thorough review of the Adani group following the Hindenburg allegations. However, we will be monitoring any developments closely,” said GQG. CLICK HERE FOR MORE DETAILS