financetom
Business
financetom
/
Business
/
Factbox-Major fallout for India's Adani Group after U.S. bribery indictment
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Factbox-Major fallout for India's Adani Group after U.S. bribery indictment
Nov 27, 2024 6:07 AM

(Reuters) -Some nations and investors have either scrapped deals or halted investments in the Adani Group, after the United States indicted its billionaire chairman Gautam Adani for alleged bribery and fraud to win contracts for a group company, Adani Green Energy.

Adani Group has denied all the accusations as "baseless", but its 10 listed entities have lost about $33 billion in market value since the indictment, with Adani Green the hardest hit, losing about $9.7 billion in market value.

Here are key details of the conglomerate's stalled deals and other fallout:

** Ratings agency Moody's cut the outlook on the ratings of seven Adani entities to 'negative' from 'stable,' citing the U.S. indictment of Chairman Gautam Adani and others could weaken the group's access to funding and increase its capital costs.

Meanwhile, Fitch earlier put some Adani Group bonds on watch for a possible downgrade, also citing the U.S. indictment.

** India's Andhra Pradesh state is likely to suspend a power purchase deal linked to Adani Group due to the U.S. indictment, two state government sources told Reuters. The southern state will also ask the federal government and the Solar Energy Corporation of India (SECI), which awards power supply contracts to companies like Adani, to investigate the charges.

** French oil major TotalEnergies will not make any more investments in the Adani Group. Total has a 20% stake in Adani Green Energy, putting its financial exposure in Adani firms at between $4 billion and $5 billion, Bernstein Research estimates.

** The U.S. International Development Finance Corp is reviewing the impact of the indictment against Gautam Adani on the agency's plan to lend $550 million for a port development project in Sri Lanka partly owned by Adani Group. Last November, the agency said it would provide financing for the port terminal project in the key city of Colombo.

** Sri Lanka is studying the accusations against Adani Group and will consider all aspects of its projects in the island nation. The government is taking the concerns seriously but has made no final decision yet.

** Kenya has canceled a procurement process of more than $2 billion that was expected to give control of its main airport to the Adani Group. The deal was to add a second runway at the Jomo Kenyatta international airport and upgrade the passenger terminal. Kenya also scrapped a separate 30-year, $736-million public-private partnership, signed by Adani Energy Solutions with its energy ministry in October.

** Bangladesh has set up a committee to investigate its power generation contracts signed during the tenure of former prime minister Sheikh Hasina, one of them with Adani Power.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Lendingkart CEO calls for innovative approaches to tackle credit crunch in SME sector
Lendingkart CEO calls for innovative approaches to tackle credit crunch in SME sector
Nov 17, 2023
Lendingkart CEO Harshvardhan Lunia discussed Lendingkart's performance, highlighting the increased credit demand in the SME space during the festive season. He attributed this surge to a more celebratory Diwali season and reported substantial growth for Lendingkart.
Hearing Solutions to utilise ₹50 crore fundraise for nationwide expansion, says managing director
Hearing Solutions to utilise ₹50 crore fundraise for nationwide expansion, says managing director
Nov 20, 2023
Hearing Solutions, the company behind the Hearzap hearing care chain, has successfully secured Rs 50 crore in funding from the healthcare and life sciences-focused private equity fund of 360 One Asset Management.
Experts decode the best practices India's startups need to adopt as they commit to gender parity
Experts decode the best practices India's startups need to adopt as they commit to gender parity
Nov 16, 2023
Despite women holding only 19% of corporate positions, there is a glimmer of hope in the startup landscape. The ACT's Women in India’s Startup Ecosystem report reveals that 35% of the Indian startup workforce is female. By taking targeted and timely actions, the representation of women in startups could potentially reach 50% by 2030.
IPO is a significant milestone for startups, but should not be the ultimate goal, says expert
IPO is a significant milestone for startups, but should not be the ultimate goal, says expert
Nov 16, 2023
In a discussion with CNBC-TV18, Nisha Poddar engaged with industry experts Karan Sharma (MD & Co-Head of Digital & Tech Investment Banking at Avendus Capital), Disha Singh (Co-Founder at Zouk), and Rahul Chowdhri (Partner at Stellaris Venture Partners). The conversation delved into the prevailing challenges for startups amidst a funding winter, exploring viable options and shedding light on the practicalities of deals in the startup landscape.
Copyright 2023-2026 - www.financetom.com All Rights Reserved