Adani Green shares soar 19% as group rebounds sharply as legal challenges continue in the US | Wilnesh News

Shares of India’s Adani Group climbed further on Friday, resuming multi-day gains, after a statement refuted bribery allegations against its billionaire chairman Gautam Adani.

adani green energyThe company came under the spotlight of a storm of U.S. prosecutions, sending its shares soaring 19%. The stock has recovered sharply from losses since it plunged more than 18% to 1,145.70 rupees on November 21, its worst day in six months. The stock last traded at 1,286.1 points on Friday.

Adani Energy Shares in Adani Total rose 14.4% on Friday, while Adani Total soared 7.2% – taking the company up 43% since the sell-off following the indictment. Total Energy Corporation announces Suspension of new investments Linked to Adani Group.

Mohit Mirpuri, equity fund manager at SGMC Capital, told CNBC that the recent rebound in stocks reflects a “cautious improvement in investor sentiment,” while warning that volatility will increase as the case unfolds. big.

Stock recovery follows Archive On Wednesday, Adani Green Energy released a statement saying that Adani and his nephew Sagar Adani “are not charged with violating the FCPA (U.S. Foreign Corrupt Practices Act) among the counts set forth in the indictment.”

Shares in Adani Green Energy rebounded 10% following Wednesday’s news, while shares in flagship Adani Enterprises rose 11.5%.

Adani and seven other defendants were charged last week in New York federal court with participating in a massive bribery and fraud scheme.

The 62-year-old billionaire is accused of paying more than $250 million in bribes to Indian government officials to secure solar power contracts that could generate more than $2 billion in profits.

The Indian industrial tycoon is also accused of misleading U.S. and international investors about his company’s compliance with anti-bribery and anti-corruption standards while raising more than $3 billion for energy projects.

The group’s shares suffered a massive sell-off after the indictment was announced, while investors and partners withdrew new funding and contracts related to the group’s global operations. Fitch Ratings has rated several U.S. dollar bonds issued by Adani Group of Companies on its negative rating watch list.

Arpit Chaturvedi, a consultant in Teneo’s geopolitical risk advisory team, said that while the developments would “damage Adani’s credibility and growth prospects”, the group enjoyed “strong government support and ample liquidity to support its borrowings.”

Chaturvedi added: “The group’s relationships with sources of capital elsewhere, including in the Middle East and domestically, may not be compromised.”

Talking about several comparable players in India’s infrastructure and energy space, Mirpuri noted that investor confidence may depend on “the resolution of ongoing legal challenges” and Adani Group’s measures aimed at increasing transparency.