Adani Group has reportedly canceled its $600 million bond offering after U.S. prosecutors charged Gautam Adani in an alleged $250 million bribery scheme. The charges sent shockwaves through markets, causing Adani’s U.S. dollar bonds to plunge in Asian trading.
Adani Group shelved the bond sale just hours after pricing it, following announcements from the U.S. Department of Justice and the Securities and Exchange Commission. The allegations claim Adani and other executives orchestrated bribes to Indian officials to secure lucrative solar energy contracts.
Existing Adani Green Energy bonds, issued in March, fell a record 15 cents, trading as low as 80 cents on the dollar. Other Adani Group securities dropped sharply, with losses rivaling those triggered by last year’s Hindenburg Research report, which accused the company of stock manipulation and accounting fraud.
“While Adani weathered the Hindenburg allegations, these charges highlight ongoing governance and regulatory risks,” Mohit Mirpuri, a fund manager at Singapore-based SGMC Capital Pte, was quoted as saying in a Bloomberg report.
The indictment filed in Brooklyn alleges Adani and other executives misled investors while raising funds from U.S. markets. Key figures named include Sagar Adani and Vneet Jaain, accused of violating federal laws.
The group’s reputation has been under scrutiny since the Hindenburg report wiped $150 billion from its market value in 2023. Adani had begun rebuilding investor confidence, but the U.S. charges now threaten to derail those efforts.
Despite the setbacks, Adani Group recently announced plans to invest $10 billion in U.S. energy and infrastructure, signaling its ambition to expand globally even as it faces mounting legal and market pressures.