Adani Group Stocks Experience Significant Gains

Adani Group stocks witnessed a remarkable surge, with gains of up to 14%, following reports of meetings between representatives of Gautam Adani and officials from the Trump administration. These discussions reportedly focused on the dismissal of criminal charges in a bribery investigation.

Market Response to the News

Adani Enterprises shares rose by 8.5%, while Adani Total Gas saw a 14% increase. Other companies within the group, including Adani Ports, Adani Power, Adani Energy Solutions, and Adani Green Energy, experienced gains between 7% and 10%. Ambuja Cements and ACC also saw improvements of up to 3%.

Behind the Scenes of the Discussions

Bloomberg reports that these discussions, which began earlier this year, have recently intensified. There is potential for a resolution next month if progress continues. The Adani team argues that the prosecution does not align with the current administration's priorities.

Legal Challenges Facing Adani

In November, US authorities charged Gautam Adani and his nephew, Sagar Adani, with alleged bribery in Indian power supply contracts and misleading US investors during fundraising. The SEC has summoned both individuals, accusing them of paying significant bribes to Indian officials and misrepresenting anti-bribery compliance during Adani Green Energy's $750 million bond offering.

Adani Group's Stance on Allegations

The Adani Group has labeled these allegations as "baseless" and is prepared to pursue "all possible legal recourse." The alleged bribes were aimed at securing profitable solar power agreements, expected to generate $2 billion in profits over two decades.