Adani Group’s stocks saw a significant rise of over 8% on Monday, November 25, as investor confidence was partially restored following recent legal developments. The rise came after Jugeshinder Robbie Singh, Chief Financial Officer of Adani Group, reassured investors that none of the 11 public companies under the conglomerate’s portfolio were facing indictment.
In a statement issued via his X (formerly Twitter) account, Singh addressed the concerns surrounding the group’s ongoing legal issues. He emphasized that none of the public companies, including subsidiaries, were implicated in recent filings made by the U.S. Department of Justice (DOJ).
In the recent update on the case, a Reuters report indicates that the summons requires a response within 21 days, according to the filing dated Wednesday in federal court in the Eastern District of New York. The SEC suit seeks unspecified monetary penalties and restrictions on the Adani’s from serving as officers of listed companies.
Adani Group Stock Reaction Today
| Name of Stock | Stock Reaction Intra-day |
| Adani Enterprises | 4.12% |
| Adani Ports and SEZ | 4.84% |
| Adani Green Energy | 8.25% |
| Adani Power | 4.34% |
| Adani Energy Solution | 7.09% |
| Adani Total Gas | 5.25% |
| Adani Wilmar | 3.42% |
| Ambuja Cement | 2.80% |
Reassurance from Adani Group CFO
Singh’s statement aimed to clarify the situation, following mounting concerns regarding legal actions. “Adani Online has a portfolio of 11 public companies, and none are subject to indictment, meaning they are not defendants in any legal proceedings as per recent DOJ filings in a New York court,” Singh said.
He further clarified that the legal action mentioned in the filings was specific to Adani Green, one of the group’s companies. Singh revealed that the controversy revolves around a contract tied to Adani Green, which represents roughly 10% of its overall business.
However, he assured stakeholders that further, more detailed information would be shared in an appropriate forum in due course.
Adani Group Faces Serious Allegations
This comes after an intense two-day period of market volatility linked to the Adani Group, triggered by allegations made in a U.S. court. On Thursday, November 23, it was reported that Gautam Adani, the founder and chairman of the group, along with seven other individuals, were accused in a U.S. indictment related to a massive bribery and fraud case.
The indictment alleges that Adani and his associates orchestrated a bribery scheme involving approximately $265 million in bribes. These payments were reportedly made to secure lucrative contracts expected to yield $2 billion in profits over the next two decades.
Adani Group’s Response and Market Reaction
While the legal case is still unfolding, Adani Group’s stocks reacted positively on Saturday, suggesting that Singh’s clarifications helped alleviate some investor concerns. The group’s public stance insists that the company remains unaffected by the indictment, with no public companies involved in the legal proceedings.
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(With Reuters and Bloomberg Inputs)