By Kosaku Narioka


Adani Group stocks fell sharply following news that billionaire founder Gautam Adani was charged by the U.S. Justice Department in a bribery scheme.

Adani Green Energy shares fell 18% on Thursday in India, Adani Enterprises shares declined 19% and Adani Ports & Special Economic Zone was down 13%.

U.S. prosecutors announced an indictment Wednesday alleging that Adani, the chairman of the Adani Group, met with Indian officials to advance an illicit deal and secure contracts worth billions of dollars for a renewable-energy company owned by the conglomerate.

Prosecutors also alleged that Gautam Adani and two Adani Green Energy executives conspired to misrepresent the renewable-energy firm's antibribery and corruption practices to U.S. investors and financial institutions to obtain financing.

In a statement, the Adani Group denied the allegations, calling them "baseless."

"The Adani Group has always upheld and is steadfastly committed to maintaining the highest standards of governance, transparency and regulatory compliance across all jurisdictions of its operations," it said.

Adani Green Energy said Thursday that it decided not to proceed with planned U.S. dollar-denominated bond offerings in light of U.S. Justice Department actions.

Gautam Adani founded the Adani Group in 1988. The conglomerate built its energy empire on coal and is now setting up a solar supply chain. It is also building a solar farm in Western India that is expected to cover an area over five times the size of Paris.

Gautam Adani's firm has capitalized on India's goal of increasing renewable energy while reducing dependence on Chinese imports. Although India has managed to start building solar panels within its borders, the raw materials have been mainly imported from China.

Critics said Gautam Adani grew his business empire partly through ties with the government of Prime Minister Narendra Modi.

Adani Group stocks had fully or mostly recovered from the selloffs in early 2023 following the publication of a report by Hindenburg Research. The U.S.-based short seller alleged Adani had manipulated its share prices, among other things. Adani denied the claims.

Adani Green Energy said an expert committee appointed by India's Supreme Court found no regulatory failure and that the management saw no material consequences of the allegations mentioned in the short-seller's report.

The earlier recovery in Adani Group stocks was helped by a large investment from Florida-based GQG Partners, which invested nearly $1.9 billion in four Adani companies in March 2023.

GQG Partners shares fell 19% on Thursday in Australia.


Write to Kosaku Narioka at kosaku.narioka@wsj.com


(END) Dow Jones Newswires

11-21-24 0354ET