Here’s why Adani shares are going parabolic today (May 15)

Adani Enterprises' stock price continued its surge on Friday as investors cheered the new agreement between the company and US authorities. It jumped to INR 2,712, its highest point since November 2024, and 60% above its lowest point this year. 

Other Adani stocks also surged, with the port business soaring to a record high of INR 1,796, and Power jumping to INR 229. Adani Green Energy jumped to INR 1,457, its highest point since November 2024, and Adani Energy Solutions hit INR 1,365. As a result, Gautam Adani’s net worth soared to $109 billion, up by $25 billion this year.

Gautam Adani’s stocks soared today | Source: TradingView

Adani Enterprises' stock jumped after the Department of Justice, Securities and Exchange Commission, and the Office of Foreign Assets Control planned to end their lawsuit against the company. This is after Gautam, a close ally of Narendra Modi, pledged to invest up to $10 billion in the United States.

According to the Financial Times, Adani will pay less than $20 million to the Securities and Exchange Commission, which alleged that he and Sagar Adani, his nephew, failed to disclose an alleged bribery scheme in India.

At the same time, Adani Group will settle with the Office of Foreign Assets Control. The agency had sued the company for importing Iranian oil to India, a move that went against US sanctions.

The DoJ will drop a case in which Adani and other related people conspired to pay bribes to Indian officials, while not disclosing this to American investors. 

Still, these details have not been finalized, and the rising criticism in the United States and India may push the Trump administration to cave and continue with the suits.

The end of these lawsuits will cap a tumultuous period for Adani and his companies. It faced a major crisis a few years ago when Hindenburg Research published a long report alleging major crimes in the company, including market manipulation. Adani denied these allegations and a prolonged investigation by Indian regulators cleared the company.

The Trump administration has moved to dismiss many lawsuits brought by the Joe Biden administration. For example, the SEC ended lawsuits against companies like Coinbase, Ripple Labs, Uniswap, and Immutable.

One of Trump's first acts as president was an executive order pausing the Foreign Corrupt Practices Act Enforcement (FCPA) at the Justice Department. The executive order paused new criminal cases and asked the department to review existing ones.

Ending the Adani lawsuits will open new opportunities for his companies to invest in the United States and other countries. In the past few years, the company has lost some major deals because of the lawsuits. For example, the Kenyan government ended a deal to have his airport company improve and manage the Jomo Kenyatta International Airport.