How did Adani's wealth plummet by $12 billion in just one day amid US bribery scandal?

Gautam Adani's wealth plunged by $12 billion in a single day after U.S. bribery and securities fraud charges rocked the Adani Group, triggering a massive stock sell-off and market turmoil.

Gautam Adani, once among the world’s richest individuals, saw his wealth take a dramatic hit on Thursday, losing a staggering $12 billion in a single day. The sharp decline comes after U.S. prosecutors unveiled bribery and securities fraud charges against Adani, his nephew Sagar Adani, and other top executives from the Adani Group. These charges have cast a long shadow over the Indian conglomerate’s reputation and sparked a sell-off in its stock market.

The charges, which stem from accusations of over $250 million in bribes paid to Indian government officials between 2020 and 2024, have shaken investor confidence in the Adani Group. U.S. prosecutors claim the bribes were intended to secure solar energy contracts and to manipulate government decisions. Additionally, the group’s energy arm, Adani Green Energy, is accused of misleading investors by issuing false statements in raising over $3 billion in loans and bonds.

The impact on Adani’s wealth was immediate. His net worth, which stood at $69.8 billion, plummeted to $58.5 billion, knocking him down from 22nd to 25th place on Forbes’ Real-Time Billionaires List. The charges also sent Adani Group stocks into a freefall, with shares of key companies like Adani Green Energy, Adani Ports, and Adani Energy Solutions dropping the maximum allowed by market rules—20%. In total, the market capitalization of the Adani Group’s 10 listed companies shrank by ₹2 lakh crore (approximately $24 billion), marking the group’s worst trading day since the Hindenburg Research report in early 2023.

The decline in stock value was accompanied by a sharp drop in the prices of Adani Group’s dollar-denominated bonds. Debt maturing in 2027 and 2030 traded at a steep discount, well below 80 cents on the dollar. Moody’s Ratings called the situation “credit negative,” citing concerns about the group’s corporate governance and liquidity.

This latest scandal follows a turbulent year for Adani, whose wealth was already significantly impacted by a 2023 report from Hindenburg Research accusing the group of stock manipulation and financial misconduct. That report caused Adani’s net worth to drop by $80 billion, and over $150 billion in market value was wiped from his companies. While Adani had made efforts to recover in 2024, restoring his net worth briefly above $100 billion, this new crisis threatens to undo much of that progress.

For the Adani Group, which is a key player in India’s renewable energy sector, the allegations and the ensuing market turmoil present a serious challenge to its operations and ambitions. Analysts warn that ongoing projects may face disruption, and future investments could be harder to secure as global scrutiny of the group intensifies.

The U.S. Department of Justice and the Securities and Exchange Commission are pursuing legal actions, further complicating the group’s recovery efforts. As the fallout continues, Adani faces an uphill battle to restore both his wealth and the group’s reputation in the eyes of investors and the global market.