Shares of Adani Group’s listed companies tumbled sharply on Thursday after U.S. prosecutors indicted founder Gautam Adani on allegations of a $250 million bribery scheme.
The charges claim Adani and other executives paid Indian government officials to secure lucrative energy supply contracts, triggering significant financial repercussions for the conglomerate.
Adani Enterprises, the group’s flagship firm, saw its share price plunge 21.55% to ₹2,213.60 ($26.22) in Indian markets on Thursday. Adani Green Energy, directly linked to the bribery allegations, fell 17.57% to ₹1,164.45 ($13.79) and announced the cancellation of a planned $600 million bond issuance.
In a filing with the Bombay Stock Exchange, the company cited the indictment, stating: “In light of these developments, our subsidiaries have presently decided not to proceed with the proposed USD-denominated bond offerings.”
Other group entities faced sharp declines as well. Adani Power lost 11.5%, Adani Ports dropped 17.5%, Adani Energy Solutions fell 19%, and Adani Total Gas saw a 13% decline, reflecting widespread investor unease about the allegations.
The cascading losses have reduced Gautam Adani’s net worth to $57.5 billion, down from $69.8 billion. This pushed him to the 25th position on Forbes’ Real-Time Billionaires list, down from 22nd. Despite the significant drop, Adani remains Asia’s second-richest individual, trailing only Mukesh Ambani.
The indictment accuses Adani and seven co-defendants, including his nephew Sagar Adani and former Adani Green Energy CEO Vneet Jaain, of paying $265 million in bribes to Indian government officials.
These payments allegedly secured contracts to develop India’s largest solar power plant project, projected to generate $2 billion in profits over 20 years. Prosecutors further allege that the group raised more than $3 billion through loans and bonds by concealing corruption from lenders and investors.
The allegations add to the challenges Adani has faced since the January 2023 Hindenburg Research report, which accused the conglomerate of “brazen stock manipulation and accounting fraud.” While Adani vehemently denied those claims, the report sparked a sell-off that erased billions in market value and prompted political scrutiny over Adani’s ties to Indian Prime Minister Narendra Modi.
A spokesperson for the group dismissed the allegations as “baseless,” highlighting the presumption of innocence under US law and affirming the company’s commitment to pursuing all legal remedies. The Adani Group reiterated its adherence to high standards of governance, transparency, and compliance across its operations and assured stakeholders of its law-abiding practices.
