Adani Group’s market value fell to ₹2 lakh crores on November 21, 2024 after the bribery allegations. It seems like the whole world has become an iceberg to sink this Titanic. But, what if we tell you that this is nothing new for the Adani Group?
Hindenburg is not the only nail which Mr Adani had to endure. There have been numerous scandals and tribulations which pestered the business since 2017.
Let us find out in this blog.
Timeline of Adani allegations and price movements
The best way to understand Adani’s share price shifts is to go through the timeline. Below is the list of everything that has stolen Adani Group’s goodnight sleep and the brightness of its share prices.
2017 Carmichael coal mine project
In 2017, Adani faced backlash for proposing the Carmichael coal mine project. Planned to be established in Queensland, Australia the Carmichael coal mine project cost around USD 16 billion. The plan faced massive protests from people concerned about carbon emissions and the potential threat to the Great Barrier Rift.
The company continued engaging with climate activists and some Aboriginal groups before sending its first shipment in December 2021.
Recently, the company also faced accusations of racism in this offshore business. The accusation began when an Aboriginal group filed a complaint to the Human Rights Commission. Although the company has not received any notification from the Commission, it is prudent to keep a close watch on the matter.
Effect on stock price
After the Adani group struck a deal with the Australian government and agreed to pay royalties, the project got official approval. The stock market saw a rise in CMP (current market price).
| Exchange | Closing CMP | Increase or Decrease |
| NSE | 128.10 | 8.63% |
The racism allegation has hit the company recently. Therefore, its impact has been diluted by the ongoing indictment.
2017 Godda power plant
A power purchase agreement in Bangladesh led to the establishment of Goda Powerplant in Jharkhand. The group came under heat due to allegations of favouritism and violation of tribal rights.
Effect on stock price
This deal did not cause an immediate stock surge or fall in 2017. However, after the US allegation, there have been some concerns in Bangladesh.
With Sheikh Hasina’s ouster and the ongoing turmoil of the Adani group, the interim Bangladesh government has hinted towards scrutiny. If this materialises, there will be a significant impact on Adani Power’s share price.
Also read: Best Auto Stocks to Invest in India for 2024
2021 Yangon port
Adani port planned to establish container terminals In Yangon City, Myanmar. International investors scrutinised the project because it was built on property leased by the Myanmar military conglomerate.
Effect on Adani Ports share price
After a lot of turmoil, Adani Ports finally decided to sell its controversial port at a discounted rate of USD 30 million. Although this was a loss for the group, it pumped fresh money into circulation. Share prices rose and reached the range of ₹600 to ₹700 during the day.
February 2023 Sri Lanka wind power project
Adani Green entered an agreement with the Sri Lankan Government to establish wind power projects in the northern province. The company faced backlash from locals and activists claiming a threat to livelihood and biodiversity.
Effect on Adani Green’s share price
Even though the deal was approved by the Sri Lankan Government, Adani Green’s share price did not get very strong high. Although it cannot be conclusively said to what extent the paring rise was because of the January 2023 Hindenburg Research Report, the Sri Lankan ordeal did not greatly help Adani Green share prices.
The company recorded an increase to ₹1790 from ₹1770 after the announcement.
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January 2023 Hindenburg research report
Hindenburg Research published a report on 24th January 2023 alleging misconduct and stock manipulation by the Adani Group. The report set the Adani stocks on fire, making them turn into merely a fraction of what they used to be.
Effect on stock price
The report affected several Adani subsidiaries. Let us investigate each in detail.
Adani Enterprises share price
The stocks of Adani enterprises fell by 70% to ₹1017 after the Hindenberg report. As of 9th August 2024, the price stands at ₹3188. It is still six percentage points lower than the pre-report value.
Adani Power share price
There was a 52% decline in the Adani Power share prices. The prices fell from ₹275 to ₹132. Since then the Adani Power share prices have made twice of what it was.
Adani Ports’ share price
The Adani Port share prices recorded a 48% decline to ₹395. Adani Ports took 119 days to recover from the Hindenburg trauma. The company recorded a 101% rise to ₹1534 in August 2024.
Adani Green’s share price
Adani Green’s share price recorded a 75% fall from ₹1917 to ₹485. The stock took 379 days to achieve its pre-report value.
Adani VS Hindenburg round 2
The new Hindenburg report doubled down on its claim of stock manipulation whilst coiling the SEBI chief Madhabi Puri Buch and her husband. The report claimed that she along with her husband are invested in offshore funds tied to Adani.
Interestingly, the report also cautioned Hindenburg’s short-selling interests in the stocks mentioned in the report. The Indian markets showed little to no reaction in their investing activities after the report.
August 2023 OCCRP report
The Organised Crime and Corruption reporting project accused the Adani family of violating Indian laws by investing in Adani stocks through offshore accounts.
November 2024 US court indictment and civil case
Gautam Adani and his nephew have been indicted by US prosecutors for bribing Indian officials to USD 265 million in exchange for solar projects which would generate nearly USD 2 billion. Arrest warrants have also been issued.
Mr Adani has rejected the claims as ‘baseless’ and said he would take every available legal aid.
Also read: Adani Group Shares Tumble Amid US Bribery Allegations
| Adani Stock name | CMP (₹) | Change |
| Adani Green Energy Ltd. | 1052 | Fall of 8.20% |
| Adani Ports & Special Economic Zone Ltd | 1138 | Rise of 2.05% |
| Adani Power Ltd. | 461 | Fall of ₹3.23% |
Conclusion
It has been a treacherous time for the company and its investors. It is of utmost importance for investors to engage cautiously. There is no point in reacting hastily to headlines and clickbait. Due diligence before selling, buying or holding stocks is crucial.
