Adani Group Scrutiny Sparks Global Investment Impact

The Adani Group faces a significant downturn after its chairman, Gautam Adani, was indicted in the U.S. for alleged bribery and fraud. The conglomerate has lost around $33 billion in market value, affecting deals with various international investors and prompting negative reactions from ratings agencies.

The Adani Group is under intense scrutiny as nations and investors halt projects following its chairman Gautam Adani's indictment for alleged bribery and fraud in the United States. This development has led to a staggering loss of around $33 billion in market value across its ten listed entities, with Adani Green Energy particularly hit hard.

Moody's ratings agency has downgraded the outlook of seven Adani entities to 'negative' from 'stable,' citing the potential for weakened funding access and increased capital costs. Fitch has similarly put select Adani bonds on downgrade watch, aligning its concerns with Moody's. In a ripple effect, India's Andhra Pradesh state considers suspending a power purchase agreement due to these allegations.

Key global stakeholders, including TotalEnergies, have paused further investments, directly impacting Adani Green Energy, where Total holds a 20% stake. Additionally, developments in Sri Lanka, Kenya, and Bangladesh linked to Adani's business interests are now under review, raising questions about future international ventures amidst the ongoing legal and financial challenges.

(With inputs from agencies.)