Adani Stocks Rally After US Drops Charges On Gautam Adani: Adani Ent, Adani Green, Adani Total Jump Up To 6%

Adani Group stocks rallied on May 19, after the US department of justice (DoJ) dropped all fraud and criminal charges against Gautam Adani and nephew Sagar Adani. Stocks like Adani Green Energy, Adani Enterprises and Adani Total Gas jumped more than 2% during Tuesday's session before correcting in the closing bell. Other Adani stocks traded higher as well. However, Adani Ports was the only stock that performed in red.

Adani Group Stocks Rally On May 19:

Adani Enterprises, the flagship company of Adani Group, zoomed by more than 3% on BSE. While Adani Green Energy skyrocketed by more than 5.4% and neared its 52-week high of Rs 1,472.30 after hitting an intraday high of Rs 1,442.70. Adani Energy Solutions also gained by 2.5% overall.

Meanwhile, Adani Total Gas was the second best performer among other Adani stocks on May 19. This natural gas stock surged by 4.3% overall. Also, Adani Power soared by nearly 2.5% to hit an intraday high of Rs 224.70 apiece, which is near to its 52-week high of Rs 234.35 apiece.

Currently, these Adani stocks have corrected and trading with 0.3% to over 1% upside. On the other hand, Adani Ports entered into the red territory. Adani Ports which neared its 1-year high of Rs 1,823.75 apiece after hitting an intraday high of Rs 1,805.00 apiece, erased its gains and traded lower by 1.4% to near its day's low of Rs 1,761.35 apiece.

US Justice Department Drops All Charges On Gautam Adani

The US justice department dismissed all criminal charges against Gautam S Adani, Sagar R Adani and six others. The founder of port-to-power empire, Adani Group, was accused of bribery and fraud worth $250 million to US investors.

This move comes few days after the Securities and Exchange Commission (SEC) announced to settle its civil lawsuit against Adani and his nephew, Sagar Adani.

In its regulatory filing, on May 18, Adani Enterprises announced that they have entered into a settlement agreement the U.S. Department of the Treasury's Office of Foreign Assets Control.

In November 2024, the US department had alleged that between approximately 2020 and 2024, the accused has bribed Indian government officials to pay more than $265 million to obtain lucrative solar energy supply contracts with the Indian government. These were projected to generate more than $2 billion in profits after tax over an approximately 20-year period (the Bribery Scheme). Additionally, Gautam and his nephew Sagar Adani along with others were accused of bribing Indian government officials for solar contracts. A five-count criminal indictment was unsealed in federal court in Brooklyn.

It was further revealed that it was during these periods that Gautam S. Adani, Sagar R. Adani and Vneet S. Jaain allegedly conspired to misrepresent the Indian Energy Company's anti-bribery and corruption practices and conceal the Bribery Scheme from U.S. investors and international financial institutions to obtain financing, including to fund those solar energy supply contracts procured through bribery.

Among the companies under Adani Group that were accused included Adani Green Energy.

However, the latest clearance of criminal charges come as a good news. Last week, Gautam Adani's lawyer Giuffra Jr told the justice department of US that he will invest $10 billion in the USA economy and enable 15,000 jobs opportunity if the fraud charges were dropped. The lawyer said, Gautam Adani could not invest these amount as the case of proceeding.

Hence, on May 18, in a short letter sent to Judge Nicholas Garaufis at the US District Court in the Eastern District of New York, the DOJ said, "The Department of Justice has reviewed this case and has decided, in its prosecutorial discretion, not to devote further resources to these criminal charges against individual defendants."