Adani Shares Soar as CFO Asserts Publicly Listed Firms Exempt from US Indictment
Adani Group’s stocks bounced back on Monday after an unsettling week due to U.S. legal issues. The conglomerate’s CFO, Jugeshinder Singh, reassured investors by stating that none of their publicly listed companies were implicated in the U.S. charges of bribery and fraud.
Last week, the news of Chairman Gautam Adani and others facing allegations of bribery and misleading investors caused a sharp drop in Adani’s stock value. However, the shares showed signs of recovery on Friday, and this positive trend continued into Monday with multiple Adani companies seeing an uptick in their share prices. Adani Enterprises Ltd rose by 2.6%, and Adani Ports and Special Economic Zone Ltd by 1.6%, among others.
It’s not just Adani; Indian stocks overall made gains on Monday, with the Nifty 50 index marking a 1.5% rise from a recent low point.
Adani promptly refuted the U.S. charges as unfounded, clarifying that the indictment was related to a single contract held by Adani Green Energy, representing about 10% of its operations. The other publicly listed firms within the group were not mentioned in the legal accusations.
Following the arrest warrants issued for the Adani Chair last week, there was a significant market capitalization loss. This situation mirrored a past event when a critical report by Hindenburg Research led to market turbulence earlier.
In summary, while the recent legal issues caused turbulence in Adani’s stocks, the reassurances given by the CFO and the recovery in share prices indicate a positive turn of events for the conglomerate. Stay tuned for further updates on this developing story.
