Adani Energy and Adani Green Energy Hit Upper Circuit: Adani Group Shares in Focus

On November 28, 2024, Adani Group shares such as Adani Energy Solutions Ltd, Adani Green Energy Ltd, Adani Power Ltd, Adani Enterprises Ltd and Adani Total Gas Ltd rose up 10% and extended their recent recovery after the Adani Group clarification on US bribery case.

Adani Energy Solutions shares were trading up 10% and touched the day high of ₹727.35 on BSE. Adani Green Energy shares hit the upper circuit by moving up 10% to the day high of ₹1,088.20. These two stocks have been put under the first stage of the short-term additional surveillance measures (ASM stage-1) on NSE and BSE.

Adani Power shares rose 8.05% to the day high of ₹572.00. Adani Total Gas shares rose 13.90% to ₹792.60. The flagship Adani Enterprises gained 4,20% to the day’s high of ₹2,512.80. Adani Wilmar rose 1.97% and reached a day high of ₹324.90.

Adani Group’s other shares such as ACC, NDTV and Ambuja Cements shares were flat, while Sanghi Industries and Adani Ports shares gained ~1% each.

Why Adani Group Shares are Rising?

Adani Group shares have been recovering following clarifications that no bribery charges have been filed against Gautam Adani, his nephew Sagar Adani, or other executives within the group.

The U.S. Department of Justice (DOJ) indictment and U.S. Securities and Exchange Commission (SEC) civil complaint did not accuse Gautam Adani, Sagar Adani, or Vneet Jaain of any violations related to the Foreign Corrupt Practices Act (FCPA).

Adani Green Energy further clarified that the bribery charges outlined in the DOJ indictment were directed solely at officials from Azure and CDPQ, with no accusations against any Adani Group executives. Additionally, the indictment did not specify any potential fines or penalties.

Rajiv Jain’s GQG Partners, which holds a $9.7 billion stake in Adani Group companies (representing 6.1% of GQG’s total assets), recently reaffirmed its confidence in the group. Despite the ongoing allegations, GQG stated that there would be no change to its investment strategy, emphasizing that the level of exposure remains manageable, even amid Adani Group stock volatility.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.