No respite! Adani Group stocks plunge up to 11% as Kenya cancels deals after US charges against Gautam Adani
Adani Group stocks latest news: Adani Group stocks experienced continued market pressure as its shares declined for the second straight session on Friday. Adani Enterprises shares dropped 7% during early trading on Friday, touching a yearly low of Rs 2,030, whilst Adani Ports shares decreased by 5.3%, reaching Rs 1,055.40 on the BSE.
Additional group companies witnessed significant declines, with Adani Power, Adani Energy Solutions, Adani Total Gas, and Adani Wilmar recording drops between 2.6% and 5%.
Adani Green Energy saw a substantial decline of 11%, reaching Rs 1,020.85, although ACC Ltd and Ambuja shares maintained stability with slight positive movement.
The group faced additional challenges when Kenyan President William Ruto cancelled the procurement process for the country’s main airport expansion, which included an Adani Group proposal.
Furthermore, Ruto ordered the termination of a significant power transmission lines construction agreement worth over $700 million involving an Adani Group subsidiary.
“I have directed agencies within the ministry of transport and within the ministry of energy and petroleum to immediately cancel the ongoing procurement,” Ruto said in his state of the nation address, attributing the decision to “new information provided by investigative agencies and partner nations”.
The situation affects the previously established agreement between Adani Energy Solutions and the Kenya Electrical Transmission Company, a 30-year public-private partnership valued at $736 million signed in October, which was subsequently suspended by court order that same month.
These developments followed U.S. prosecutors’ indictment of Gautam Adani and other individuals regarding alleged involvement in a $265 million bribery scheme with former New York-listed company executives to advance their solar energy operations in India.
The Adani Group rejected these accusations as “baseless”, whilst Indian government officials have remained silent on the matter.
