Adani Green Slumps as Total Halts Investment Amid US Probe – Yahoo Finance
Adani Green Energy took a hit in the markets today after news broke that TotalEnergies SE is holding off on any new investments in the Adani Group. The reason? US bribery indictments against founder Gautam Adani and others need to be resolved first.
This decision raises concerns about Adani Group’s financial future and impacts TotalEnergies’ growth plans in India. Over the past few years, TotalEnergies has been working closely with Adani entities on renewable and natural gas projects.
It all started when short seller Hindenburg Research accused Adani Group of fraud and market manipulation. Now, US prosecutors claim Adani and individuals around him offered over $250 million in bribes to Indian government officials for solar energy contracts with Adani Green Energy Ltd. Of course, Adani Group denies these allegations.
Adani Green Energy shares plunged around 11% in Mumbai trading today, while TotalEnergies also saw a slight dip. In a statement released on Monday, TotalEnergies made it clear that they won’t be making any new financial contributions to the Adani Group until the situation is clarified.
TotalEnergies had made several investments in Adani Green Energy, including a minority stake and joint ventures to develop various renewable projects. They’ve emphasized that all their investments were made in compliance with laws and extensive due diligence.
This news comes as a setback for TotalEnergies’ plans to expand in India, a crucial market for its growth. The company had a significant amount of renewables capacity in India by the end of the third quarter, with many projects developed in collaboration with Adani Green Energy.
TotalEnergies assures that they are not directly involved in the allegations of corruption and will take necessary steps to protect their interests. This ongoing situation will certainly have an impact on the business landscape in the region as things unfold.