Fitch removes Adani Energy from ‘Rating Watch Negative’ list, hails long-term revenue visibility
Fitch has affirmed the ratings as the Adani Group has demonstrated adequate funding.
Coming as an aftermath of the bribery charges by the US Securities and Exchange Commission (SEC), and a US District Court, the Adani Group stocks lost Rs 2.3 lakh crore in market capitalisation on Thursday.
Shares of the flagship Adani Enterprises ended with losses of 23%, followed by Adani Green and Adani Energy Solutions, both of which fell up to 20% each. Other group stocks also fell between 10% to 20%.
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In Thursday’s trade, shares of Adani Enterprises Ltd dwindled to hit a day-low value of Rs 2,171.60.
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Shares of Adani Enterprises dipped by 23%; Adani Ports by 14%; Adani Green Energy by 19%; Adani Energy Solutions by 20%; Adani Power by 10%; Adani Total Gas by 10.4%; Adani Wilmar by 10%; ACC by 8%; Ambuja Cements by 13%; and NDTV by 0.2%.
There are 5 charges levied by the US District Court on Gautam Adani and seven others. These included conspiracy to violate the FCPA, Securities Fraud Conspiracy, Wire Fraud Conspiracy, Securities Fraud – the 2021 144A Bond, and Conspiracy to Obstruct Justice.
United States Securities and Exchange Commission (SEC) has alleged that Adani and others conspired to pay about $265 million in bribes to Indian government officials to secure solar energy contracts for Adani Green Energy, the renewable energy arm of the Adani Group.
In their response, Adani Group has issued a statement calling the allegations as baseless, and said, “As stated by the US Department of Justice itself, the charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty.”
“All possible legal recourse will be sought,” it added.
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