Daijiworld Media Network - Mumbai
Mumbai, Aug 11: Shares of Adani Group companies gained up to 3.5 per cent in early trade on Tuesday after a US court dismissed securities fraud and related charges against group chairman Gautam Adani and his nephew Sagar Adani.
US District Judge Nicholas Garaufis, based in Brooklyn, dismissed conspiracy, securities fraud and wire fraud charges against the two in a late-night order, bringing an end to the legal proceedings against them in the United States.
Following the court decision, all Adani Group stocks traded in positive territory even as the broader Indian market came under selling pressure following a rise in crude oil prices.
Adani Enterprises gained 2.6 per cent to Rs 3,080 on the BSE, while Adani Ports and Special Economic Zone rose 1.5 per cent in early trading. Adani Green Energy was the biggest gainer among the group stocks, rising 3.5 per cent.
Adani Energy Solutions, Adani Power, Adani Total Gas and NDTV gained between 1 and 2 per cent, while cement companies ACC and Ambuja Cements advanced around 0.5 per cent.
The US case against Gautam Adani was filed in 2024 during the final days of former US President Joe Biden’s administration. He was accused of agreeing to pay more than $250 million in bribes to Indian government officials to secure approval for an Adani Group subsidiary to develop a solar energy project.
US prosecutors had also alleged that investors were misled while the group raised more than $3 billion through loans and bond issuances in US markets.
Adani has consistently denied the allegations.
Judge Garaufis ordered that the charges be dismissed “with prejudice”, meaning the US government cannot revive the same case against the defendants.
In a statement posted on X, Gautam Adani welcomed the court’s decision, saying he did so “with humility and deep respect for the judicial process”.
The judge allowed the US Department of Justice’s motion to dismiss the case after seeking additional explanations from prosecutors about their decision to abandon the prosecution.
Before approving the dismissal, Garaufis directed the Justice Department to publicly explain its reasons for seeking the withdrawal of the case. He also required the defendants to submit sworn declarations confirming that there had been no promise, offer, quid pro quo or undisclosed agreement connected with the decision.
The judge said he was satisfied that Adani’s November 2024 commitment to invest $10 billion in the United States had not influenced the Justice Department’s decision to seek dismissal.
According to a Bloomberg report, the court ruling could provide Adani with greater scope to expand his business operations in the United States.
Seema Srivastava, senior research analyst at SMC Global Securities, said the immediate positive reaction in Adani stocks reflected the reduction in legal uncertainty, as previous developments in the US case had triggered sharp movements in the group’s shares.
However, she cautioned investors against treating the court ruling as an independent buy signal.
For long-term investors, the US court development should be viewed as a reduction in event risk rather than the sole basis for an investment decision, she said.
Srivastava said Adani Enterprises provides diversified exposure to airports, new energy, infrastructure and emerging businesses, while Adani Ports offers comparatively stronger cash-flow visibility. Adani Power benefits from structural growth in power demand, whereas Adani Green Energy offers strong long-term renewable energy growth but carries greater leverage and execution risks.
She advised existing investors to consider holding the stocks with a three-to-five-year perspective, while fresh investors should avoid chasing a sharp opening rally and instead consider accumulating shares in phases during market volatility.