The Adani fiasco has reached new levels in no time. Recently, a US Federal Court indicted Adani Group chairman and seven others in a bribery case.
US Indicts Gautam Adani
As per US prosecutors, the Adani group promised a bribe of USD 250 million, or around Rs 2,100 crore, to Indian officials to obtain a lucrative contract for its Adani Green Energy.
By these actions, the court has accused Adani of misleading US investors and global institutions.
This development is much more serious in nature, unlike the previous Hindenburg revelations, whose intent has always been under the scanner.
Moody's Rating on Adani
Now, globally renowned American rating agency Moody's has issued a statement in the matter.
As per Moody's this new development, and the charges against Gautam Adani are credit negative for the conglomerate’s companies.
In their statement, the rating agency said, "The indictment of Adani Group's chairman and other senior officials on bribery charges is credit negative for the group’s companies.
Our main focus when assessing Adani Group is on the ability of the group’s companies to access capital to meet their liquidity requirements and on its governance practices."
As a result of these developments, shares of Adani Group companies listed on the Indian equity markets have tumbled, with many of the company shares crashing and hitting the lower circuit.
Adani Group Shares In Decline
Adani Group's flagship Adani Enterprises also saw its shares hit the lower circuit, with a colossal decline of 20.01 per cent or Rs 564.55.
This has taken the overall value of the shares to Rs 2,256.95. The company at the centre of these developments, Adani Green Energy shares, dropped by a mammoth 18.21 per cent or Rs 257.30. This took the overall value of the company shares to Rs 1,155.40 per share.
In response to this, Adani Group has aborted its Rs 5,000 crore 'dollar bonds, saying it does not intend to proceed further with it. Apart from that, the group is yet to release a detailed statement in the matter.