
Adani Green Energy has acknowledged that it is being investigated by US authorities for potential violations of anti-corruption laws involving a third party. However, the company denies any connection to the entity under investigation. This statement comes in response to a Bloomberg report that suggested an Adani affiliate was being probed for allegedly bribing Indian officials to gain favorable treatment for an energy project. The news negatively affected the stock prices of all companies owned by the Adani conglomerate.
Adani Green Energy has stated that it has not received any notice from the US Department of Justice regarding the allegations mentioned in the Bloomberg report. The company has also emphasized that it is not associated with the third parties being investigated and therefore cannot provide any comments on the extent of the US investigation into the alleged transactions. No further details about the third party were provided by the company. Bloomberg has reported that Azure Power Global, an Indian renewable energy company, is also under investigation.
Despite the ongoing investigation, JP Morgan analysts maintain their positive outlook on the Adani Group. They believe that the group will likely face minimal financial or fundamental impact as a result of this investigation. Following the news of the US probe into potential violations of anti-corruption laws, shares of Adani Green ended 2.6% lower, while Adani Enterprises, the flagship firm of the Adani Group, closed 1.9% lower compared to the previous day.