Shares of India's Adani Group experienced significant gains on Friday, with Adani Green Energy rising by as much as 19%. This increase follows the group's statement denying bribery allegations against chairman Gautam Adani.
Adani Energy saw a jump of 14.4%, while Adani Total surged 7.2%, marking a 43% recovery since the stock sell-off triggered by the indictment.
The stock price of Adani Green Energy rebounded from a low of 1,145.70 rupees on November 21 to 1,286.1 rupees. This recovery was influenced by a filing stating that Gautam Adani and his nephew Sagar Adani have not violated the U.S. Foreign Corrupt Practices Act.
Last week, the billionaire and seven co-defendants were indicted in a New York federal court for alleged bribery and fraud involving over $250 million to secure solar energy contracts. The contracts are projected to yield over $2 billion in profits.
Despite the indictment causing a sell-off and negative ratings from Fitch Ratings on several Adani Group bonds, experts believe the conglomerate's strong government support and liquidity will mitigate long-term damage.
Investor confidence now appears contingent on the resolution of ongoing legal challenges and the group's efforts to improve transparency.