Following the fraud and bribery charges against Indian billionaire Gautam Adani in a US court, credit rating agency Moody’s stated on Thursday that bribery allegations against Adani and senior Adani Group officials are credit-negative for the group’s companies. 

“When assessing the Adani Group, we place special emphasis on the group’s companies’ ability to access capital to meet their liquidity requirements and on its governance practices,” Moody said in a statement. 

The allegations involve a purported $250 million bribery and fraud scheme. US prosecutors have accused Gautam Adani, his nephew Sagar Adani, Vneet Jaain, Ranjit Gupta, Cyril Cabanes, Saurabh Agarwal, Deepak Malhotra, and Rupesh Agarwal of bribing Indian government officials to secure a solar energy supply contract projected to generate $2 billion in profit over 20 years.

In response, large global investors, such as GQG Partners, a significant investor in Adani Group, stated it is reviewing the emerging details and will take appropriate steps for its portfolios.

It clarified that its investments align with a diversified investment strategy. Following the allegations, GQG’s stock, listed in Australia, plunged 26%.

Adani Group shares drop by up to 23%

The allegations have further shaken investor confidence in the Adani Group, already recovering from previous controversies. 

The market capitalisation of 10 Adani Group companies fell by ₹2.2 lakh crore ($26.4 billion) in a single day.

Adani Group’s stock values plummeted as much as 23% in a day. Adani Enterprises suffered the biggest blow, with its stock falling 22.61%, from ₹2,820.20 to ₹2,182.55.

The combined market capitalisation of the group’s 10 companies dropped to ₹12.04 lakh crore ($144.5 billion) from ₹14.24 lakh crore ($170.8 billion) on Tuesday. 

Adani Enterprises alone recorded a loss of ₹69,597 crore ($8.4 billion) in market capitalisation. 

Shares of seven Adani Group companies, in which the government insurance company Life Insurance Corporation of India (LIC) holds stakes, suffered a massive blow on Thursday, wiping out ₹86,683 crore ($10.4 billion) in holding value in a single day. This came after a US court found Chairman Gautam Adani and others guilty in a ₹250 million bribery case.

Adani shares plunge, drop $638 

LIC holds stakes in Adani Enterprises, Adani Ports and Special Economic Zone (APSEZ), Adani Green Energy, Adani Total Gas, ACC, and Ambuja Cements.

The flagship company, Adani Enterprises, faced the biggest loss, with its 4,64,52,613 shares losing a total of ₹2,962 crore ($355 million) in value. Its stock fell by 23%, or ₹637.65, to ₹2,182.55.

Adani Ports suffered the second-largest hit, with LIC's investment value declining by ₹2,959 crore ($354 million) as its shares fell by ₹174.35, a drop of 13.53%

According to recent shareholding data available on the BSE, LIC holds 16,97,11,417 shares, representing a 7.86% stake in Adani Ports.

Similarly, the value of LIC’s holdings in Adani Green Energy dropped by ₹570 crore ($68.3 million).

Losses in other companies included ₹716 crore ($85.8 million) in Adani Total Gas, ₹463 crore ($55.4 million) in Adani Energy Solutions, ₹191 crore ($22.9 million) in ACC, and ₹822 crore ($98.5 million) in Ambuja Cements.

Also read:

US court charges Adani with fraud accusing him of paying $250 million in bribes

Adani deems grave allegations by US Department of Justice, SEC as ‘baseless’

Rahul Gandhi demands Gautam Adani’s arrest after US court’s fraud and bribery charges