Adani group stocks slid up to 3% on the bourses today following a The Wall Street Journal’s report that said that the US prosecutors are investigating whether Gautam Adani's companies imported Iranian liquefied petroleum gas (LPG) into India via the Mundra port.
Adani Group Stocks Tumble Up to 3% Amid Reports of Suspected Iran LPG Shipments
The US Justice Department is reportedly reviewing activities of several LPG tankers suspected of supplying cargo to Adani Enterprises, raising potential sanctions concerns. Adani has denied any involvement with Iranian-origin LPG
In November last year, US authorities indicted Adani and his nephew, Sagar Adani, on suspicion of paying bribes
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While Adani is trying to get the Trump administration to drop foreign bribery charges against him, he is facing a new front in his fight with prosecutors. The report indicated that tankers operating between Gujarat’s Mundra port and the Persian Gulf exhibited behaviour commonly linked to sanctions evasion and the US Justice Department is examining the activities of several LPG tankers suspected of delivering shipments to Adani Enterprises.
US President Donald Trump said in May that any party buying Iranian oil or petrochemical products would immediately be subject to secondary sanctions.
In November last year, US authorities indicted Adani and his nephew, Sagar Adani, on suspicion of paying bribes to secure power supply contracts and misleading US investors.
Meanwhile, Adani Enterprises have termed the allegations raised by the report as baseless and mischievous. “Adani categorically denies any deliberate engagement in sanctions evasion or trade involving Iranian-origin LPG. Further, we are not aware of any investigation by US authorities on this subject,” the company said in an exchange filing on June 2.
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The flagship company of the Adani group said that it does not own, operate or track vessels (including the alleged SMS Bros/Neel). “…cannot comment on the current or past activity of vessels we have not contracted and do not control,” it added.
Adani Eneterprises fell nearly 3% to its day’s low of Rs 2,452 apiece on the National Stock Exchange. On the other hand, Adani Power, Adani Green Energy, Adani Energy Solutions and Adani Total Gas fell 2% each to their respective intraday low. Shares of Adani Ports and Special Economic Zone also declined nearly 3% to their intraday low of Rs 1,428.10 per share.
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