Shares of several Adani Group companies, including Adani Green Energy, Adani Energy Solutions, Adani Enterprises, and Adani Ports, saw significant declines on November 26, 2024. The downturn follows a series of negative developments surrounding the Indian conglomerate.
Adani Green Energy stock dropped by 7%, while Adani Enterprises and Adani Energy Solutions fell by approximately 4%. Other companies within the group, such as Adani Power and Adani Ports, also experienced notable losses.
The price decline is linked to a recent decision by Fitch Ratings to place certain Adani Group bonds on “watch negative” due to potential downgrades. This follows the indictment of key executives of the group by US authorities on bribery charges. Specifically, bonds related to Adani Energy Solutions Ltd, Adani Electricity Mumbai, and some rupee and dollar bonds tied to Adani Ports and Special Economic Zone have been affected.
In another blow to the group, TotalEnergies, which holds a 19.75% stake in Adani Green Energy, announced that it would not provide any new financial contributions to the conglomerate’s ventures.
The ongoing concerns surrounding legal issues and the ratings downgrade have significantly impacted investor sentiment, contributing to the sharp declines in the group’s stock prices.
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