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The aftermath of Adani’s indictment: In the wake of Indian bn’aire Gautam Adani’s indictment on bribery and fraud charges, the Adani Group saw its companies lose USD 27 bn in value by market close the day after the news, Reuters reports. Losses extended into Friday, with Adani Group companies losing a combined USD 1.2 bn in value, the newswire reported in a separate story.
What went down? US prosecutors formally charged Adani and seven others with involvement in a USD 265 mn bribery and fraud scheme, promising contracts that would have yielded USD 2 bn in net income over 20 years. The charges also detail raising capital through false and misleading statements, including USD 2 bn in syndicated loans and another USD 1 bn from bond offerings sold to US-based investors.
Adani Green Energy scrapped its USD 600 mn bond issuance, which was offered to the market mere hours before the charges made the news. The debt offering was almost 3x oversubscribed and had drawn over USD 1.9 bn in orders, Bloomberg reports.
Kenyan President William Ruto called off two major projects with Adani, including a USD 2 bn airport project at Jomo Kenyatta International Airport — that would have seen Adani add a second runway and upgrade the passenger terminal in exchange for a 30-year lease — and a USD 736 mn power transmission line project, Reuters reports.
Adani has gone on the defensive, rejecting the accusations as “baseless,” and reaffirming that “Adani Group has always upheld and is steadfastly committed to maintaining the highest standards of governance, transparency and regulatory compliance across all jurisdictions of its operations,” the group said in a statement.
This isn’t Adani’s first controversy, with the group being on the receiving end of a sackful of allegations over the years. The accusations include market manipulation and fraud schemes made by US short seller Hindenburg Research, which triggered massive share sell-offs in January 2023 and again in August, to allegations of using offshore funds to trade its own shares, to protests over the Kenya airport project.
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TASI |
11,841 |
-0.2% (YTD: -1.1%) |
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MSCI Tadawul 30 |
1,487 |
-0.3% (YTD: -4.1%) |
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NomuC |
30,540 |
+2.3% (YTD: +24.5%) |
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USD : SAR (SAMA) |
USD 3.75 Sell |
USD 3.75 Buy |
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Interest rates |
5.25% repo |
4.75% reverse repo |
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EGX30 |
30,632 |
+0.1% (YTD: +23.1%) |
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ADX |
9232 |
-0.9% (YTD: -3.6%) |
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DFM |
4724 |
-0.1% (YTD: +16.4%) |
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S&P 500 |
5969 |
+0.4% (YTD: +25.2%) |
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FTSE 100 |
8262 |
+1.4% (YTD: +6.8%) |
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Euro Stoxx 50 |
4789 |
+0.7% (YTD: +5.9%) |
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Brent crude |
USD 75.17 |
+1.3% |
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Natural gas (Nymex) |
USD 3.13 |
-6.3% |
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Gold |
USD 2737.20 |
+1.4% |
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BTC |
USD 97,971.70 |
-1.4% (YTD: +131.9%) |
THE CLOSING BELL: TADAWUL-
The TASI fell 0.2% on Thursday on turnover of SAR 5.4 bn. The index is down 1.1% YTD.
In the green: Albaha (+10.0%), Saudi Re (+7.1%) and Chemical (+5.5%).
In the red: Saudi Cable (-4.0%), Chubb (-3.1%) and Naseej (-2.6%).
THE CLOSING BELL: NOMU-
The NomuC rose 2.3% on Thursday on turnover of SAR 148.3 mn. The index is up 24.5% YTD.
In the green: NGDC (+17.9%), Alhasoob (+13.4%) and Aljouf Water (+10.0%).
In the red: Alqemam (-9.1%), Aldawliah (-5.3%) and Naba Alsaha (-4.5%)
