India’s Adani Green Energy has announced the appointment of independent law firms to review allegations in the US indictment of founder Gautam Adani, Executive Director Sagar Adani, and Managing Director Vineet S Jain over claims of $265 million in bribes for securing power contracts.
The announcement was included in a regulatory filing released on Thursday, where Adani Green maintained its compliance with applicable laws and regulations. The names of the appointed law firms were not disclosed.
Allegations and Adani Group’s response
In November, US authorities indicted Adani and other top executives, alleging that they paid bribes to secure power supply contracts in India and misled US investors during fundraising efforts.
The Adani Group has strongly denied the charges, calling them “baseless.”
A focal point of the US investigation is a 2021 solar energy deal in Andhra Pradesh, where the Solar Energy Corporation of India awarded a major renewables contract.
The deal was reportedly fast-tracked within 57 days despite concerns raised by finance and energy officials, ultimately benefiting Adani Green Energy.
Adani Green clarified that the company itself has not been named as a defendant in the indictment or civil complaint. It stated that it has previously disclosed all material information, including in bond offering circulars.
However, the bribery allegations against the Adani Group have caused unease among some investors and partners.
Andhra Pradesh is said to be reviewing its power deal with the conglomerate, while TotalEnergies SE has paused further investments in the Adani Group.
Shares of Adani Green Energy, already under pressure since the indictment, have fallen over 27%. On Friday, the stock was trading over 1% lower in the late hours of trading on Friday.
Adani Green Q3 earnings
The company also filed its earnings for the December quarter on Thursday.
Adani Green Energy reported a major jump in its Q3 consolidated net profit, which surged over 85% to ₹474 crore, compared to ₹256 crore in the same quarter last year.
Revenue from operations increased marginally by 2.3%, reaching ₹2,365 crore in the December quarter, compared to ₹2,311 crore in the corresponding period last year.
However, the company witnessed a 4% decline in earnings before interest, taxes, depreciation, and amortization (EBITDA), which stood at ₹1,601 crore, down from ₹1,666 crore a year ago.
Consequently, the EBITDA margin contracted to 67.7%, compared to 72.1% in the same period last year.
Post the December quarter results, brokerage firm Investec has reiterated its ‘buy’ rating on Adani Green Energy, assigning a target price of ₹2,515.
The target represents a potential upside of about 145% from the current market price of ₹1,017.
The brokerage highlighted AGEL’s consistent capacity expansion, robust operational performance, and its long-term power purchase agreements (PPAs) as key factors supporting sustained growth in the renewable energy sector.
The post India’s Adani Green appoints law firms to review US indictment appeared first on Invezz