Adani Group stocks surge; Adani Green jumps nearly 15%

A man walks past a corporate office of Adani Group in Gurugram, India, November 22, 2024. REUTERS/Priyanshu Singh
| Photo Credit: Reuters

Shares of all 11 listed Adani Group firms rallied in morning trade on Friday (November 29, 2024), with Adani Green Energy surging nearly 15%.

The stock of Adani Green Energy jumped 14.64%, Adani Energy Solutions zoomed 13.54%, Adani Total Gas climbed 7.33%, Adani Power surged 4.90% and NDTV soared 4.54% on the BSE.

Shares of Ambuja Cements went up by 2.90%, Sanghi Industries (2.44%), Adani Ports (2.25%), Adani Wilmar (2.24%), Adani Enterprises (2.11%) and ACC (1.34%).

The BSE benchmark Sensex traded 688.31 points higher at 79,732.05 and the NSE Nifty jumped 192.65 points to 24,106.80.

Abu Dhabi’s International Holding Company (IHC), one of the largest sovereign funds that manages assets close to $100 billion, has reaffirmed its support to the Adani Group, saying its outlook on investments in the group remains unchanged despite the U.S. indictment of the conglomerate’s founder chairman Gautam Adani.

“Our partnership with the Adani Group reflects our confidence in their contributions to the green energy and sustainability sectors,” IHC, one of Adani group’s key foreign investors, said in a statement.

“As with all our investments, our team continues to evaluate relevant information and developments. At this time, our outlook on these investments remains unchanged.” The IHC statement comes soon after Adani group emphasised that its chairman and his aides have not been charged under the U.S. Foreign Corrupt Practices Act but faced three other charges, including securities and wire fraud that are punishable with monetary fines.

The U.S. Department of Justice’s (U.S. DoJ) indictment filed in a New York Court last week does not mention Gautam Adani, founder chairman of the ports-to-energy conglomerate, his nephew Sagar or Vneet Jaain in any count related to conspiracy to violate the FCPA, AGEL – the firm at the heart of allegation of $265 million bribes allegedly being paid to Indian officials to secure solar power sale contracts that could benefit bring in $2 billion of profits more than 20 year period to the firm, had said in a filing to the stock exchange.

Adani Group last week denied all allegations as baseless and said it would seek legal recourse to defend itself.

Meanwhile, other international partners have also expressed their continued support. The Sri Lanka Ports Authority has expressed its ongoing confidence in its partnership with Adani, as the Indian group plays a vital role in expanding the country’s port infrastructure.

Also, the Tanzanian government has reaffirmed its commitment to its agreements with Adani Ports, as it feels that there are no concerns regarding the ongoing projects and that all contracts fully comply with Tanzanian law.

In May 2024, Tanzania and Adani Ports finalised a 30-year concession agreement to operate Container Terminal 2 at Dar es Salaam port.