Adani Group Stocks Decline Amid US Probe Report; Company Denies Allegations

Market Reaction: Adani Group Stocks Under Pressure

Adani Group stocks witnessed notable declines on Tuesday following a report by the Wall Street Journal (WSJ) alleging an investigation into Iranian LPG imports through the group's Mundra port.

Here's how Adani Group stocks performed during the session:

• Adani Enterprises: Down by 2.63%
• Adani Ports & SEZ: Fell 2.72%
• Adani Power, Adani Green Energy, Adani Total Gas, and Adani Energy Solutions: Dropped between 1% and 2%

The sell-off came shortly after the WSJ report surfaced, triggering investor concerns despite the company's strong rebuttal.

Main News: US Probe Allegations Spark Market Concern

According to the WSJ, US prosecutors are reportedly investigating whether entities linked to the Adani Group facilitated the import of Iranian LPG into India through the Mundra port.

The report highlighted the movement of tankers between the Gulf region and Mundra port that allegedly displayed behaviors associated with sanctions evasion. These movements were characterized as similar to tactics used by vessels aiming to obscure their origin or destination.

Adani Group's Firm Denial

Adani Group has firmly refuted all allegations mentioned in the WSJ report. In a regulatory filing dated June 2, Adani Enterprises issued a strong rebuttal:

• "The WSJ's story appears to be based entirely on incorrect assumptions and speculation."
• "We are not aware of any investigation by US authorities on this subject."

Strict Compliance Policy

Adani Group emphasized its adherence to international regulations and clarified:

• No cargo from Iran is handled at any of its ports.
• The company does not deal with:
  • Shipments originating from Iran
  • Vessels flying the Iranian flag
  • Ships owned or managed by Iranian entities

The statement further noted that these policies are strictly adhered to across all Adani ports.

Company Details

The Adani Group, led by billionaire Gautam Adani, is one of India's largest conglomerates with diversified interests across:

• Infrastructure
• Energy
• Logistics
• Ports and SEZs
• Natural gas distribution

Located in Gujarat, Mundra Port is a key asset in the Adani Group’s portfolio and plays a vital role in India’s cargo handling operations.

Summary

• Adani Group stocks dropped by up to 2.7% following a report by The Wall Street Journal.
• The report alleged possible Iranian LPG imports via the Mundra port.
• Adani Group denied all claims, labeling them baseless and mischievous.
• The company reiterated its commitment to compliance with global trade policies, particularly regarding sanctions.
• The situation triggered short-term volatility in Adani Group stocks despite the company's clarifications.