Shares of the Adani Group gained as much as 15% for second straight day on Thursday, November 29, after Abu Dhabi’s International Holding Company (IHC) reiterated its confidence in the Indian conglomerate. This follows a U.S. indictment accusing Adani Group executives, including billionaire Gautam Adani, of bribery and investor fraud.
In a statement released on Wednesday, IHC stated, “Our partnership with the Adani Group reflects our confidence in their contributions to the green energy and sustainability sectors. As with all our investments, our team continues to evaluate relevant information and developments. At this time, our outlook on these investments remains unchanged.”
In October last year, Abu Dhabi’s International Holding Company (IHC) increased its stake in Adani Enterprises, the flagship company of the Adani Group, to over 5%. This move came after IHC divested its investments in two other Adani companies.
Adani Group Stocks Performance Today
Adani Group shares gained up to 15% for second day in a row post clarification issued by Adani Green yesterday refuting Bribery charges against Gautam Adani and other company officials.
Adani Total Gas share price led the gains, skyrocketing up to 15% during morning trade on Thursday. Adani Green Energy and Adani Energy Solutions share price rose nearly 10% each and Adani Power share prices with up to 9% gains were not far behind.
Adani Enterprises, Adani Ports and Special and Special Economic Zone, Adani Wilmar Ltd also gained up to 5%. Among other group companies Ambuja Cements, ACC and New Delhi Televisions saw gains of up to 2%.
| Name Of Company | Stocks Performance Intra-day |
| Adani Enterprises | 5.38% |
| Adani Ports and SEZ | 2.33% |
| Adani Green Energy | 10% |
| Adani Power | 11.66% |
| Adani Energy Solution | 10% |
| Adani Total Gas | 18.73% |
| Adani Wilmar | 3.53% |
| Ambuja Cement | 0.97% |
| NDTV | 3.88% |
IHC Strengthens Stake in Adani Enterprises
At the time, IHC praised Adani Enterprises, stating it was “uniquely poised to capitalize on India’s robust growth journey.” The investment followed a turbulent period for the Adani Group.
In January of the same year, short seller Hindenburg Research accused the conglomerate of stock manipulation and carrying unsustainable levels of debt. The Adani Group strongly denied these allegations, calling them baseless.
Focus on Technology Collaboration
Beyond its stake increase, IHC also expanded its collaboration with the Adani Group by forming a technology joint venture with an IHC subsidiary. The partnership aimed to create a platform leveraging artificial intelligence (AI) and enterprise blockchain technology to drive the digitization of India’s economy.
Strategic Investments Amid Challenges
The increased investment and joint venture highlight IHC’s confidence in the Adani Group, even as the conglomerate faces ongoing scrutiny over its financial practices. The partnership reflects a focus on long-term growth opportunities in technology and infrastructure within India.
Adani Group Denies Charges, Vows Legal Recourse
The Adani Group has denied the allegations, calling them “baseless” and committing to pursue “all possible legal recourse” to defend itself. A company spokesperson emphasized that the charges are unfounded and asserted the group’s commitment to ethical practices and transparency.
Details of the U.S. Case
According to U.S. prosecutors, the scheme involved Adani Group executives paying approximately $265 million in bribes to Indian government officials. The indictment claims the purpose was to secure energy supply contracts and mislead U.S. investors and banks into raising billions of dollars.
“This indictment alleges schemes to pay over $250 million in bribes to Indian government officials, to lie to investors and banks to raise billions of dollars, and to obstruct justice,” the statement read.
The accusations have drawn global attention, putting additional scrutiny on the Adani Group’s financial practices and governance.
Adani Group’s Sustainability Focus and IHC’s Perspective
Despite the controversy, IHC has maintained its confidence in the Adani Group, particularly for its work in green energy and sustainability. This comes as the conglomerate continues to position itself as a major player in renewable energy and infrastructure development.
The developments are likely to impact investor sentiment and market activity surrounding the Adani Group, with legal proceedings and ongoing evaluations by key stakeholders being closely watched.
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