CHENNAI: Shares of Adani Group companies experienced a notable decline on Tuesday (June 3) amid reports that US prosecutors are investigating whether the conglomerate imported Iranian liquefied petroleum gas (LPG) into India through its Mundra port in Gujarat. The Wall Street Journal's report yesterday suggested that some LPG tankers associated with Adani entities may have employed tactics such as AIS spoofing to conceal their origins, potentially violating US sanctions.
AIS spoofing involves the deliberate manipulation of automatic identification system (AIS) data to deceive maritime vessels, or monitoring systems.
In response, the Adani Group issued a statement labeling the allegations as "baseless and mischievous," asserting that none of its ports process Iranian cargo and denying any knowledge of an ongoing US investigation.
Despite the group's denials, investor sentiment was affected, leading to declines in the stock prices of several Adani Group companies. Adani Enterprises fell by 2.2 percent, while Adani Ports dropped 2.5 percent. Other entities, including Adani Total Gas, Adani Power, Adani Green, and Adani Energy Solutions, saw declines ranging from 1 percent to 2 percent. The benchmark Nifty 50 index also experienced a slight dip of 0.4 percent.
This development adds to the challenges faced by the Adani Group, which has previously been under scrutiny following allegations of bribery and fraud related to solar energy contracts. The group's international securities have also been impacted, with dollar-denominated bonds experiencing sharp declines.
As the investigation progresses, market participants will be closely monitoring any further developments that could influence the Adani Group's financial standing and reputation.