Adani Ports, Adani Enterprises Shares Under Pressure After WSJ Report — Group Denies Allegations
Adani Group shares fell after a WSJ report alleged links to Iranian LPG shipments. The group denied the claims, citing full compliance with U.S. sanctions and no involvement with the vessels mentioned.
Adani Ports, Adani Enterprises Shares Under Pressure After WSJ Report — Group Denies Allegations
Shares of Adani Ports and Special Economic Zone (APSEZ) and Adani Enterprises Ltd (AEL) fell sharply in early trading on Tuesday, with both stocks down around 1.5% by 9:41 AM, making them the top losers on the NSE Nifty50. Other Adani Group companies also saw marginal declines, amid concerns raised by a Wall Street Journal (WSJ) report alleging links between Adani entities and Iranian liquefied petroleum gas (LPG) shipments.
In response, the Adani Group issued a strong denial, calling the WSJ article “baseless and mischievous” and asserting it has “no knowledge of any investigation by US authorities.”
Key Points:
- WSJ Report Allegation: Suggested Adani entities may be linked to LPG shipments from Iran, potentially breaching U.S. sanctions.
Adani's Response:
- Denied any deliberate involvement in sanctions evasion.
- Called the report defamatory and damaging to its reputation.
- Emphasized that none of its ports handle Iranian cargo, directly or indirectly.
- Stated it does not own, operate, or track the vessels mentioned (e.g., SMS Bros, Neel).
Compliance and Operations:
Adani Group clarified that LPG trading is a minor part of its business — contributing just 1.46% (about $171.2 million) to AEL’s FY2025 consolidated revenue. It also stressed that:
- All LPG is sourced through reputable, vetted suppliers.
- Extensive due diligence and Know-Your-Customer (KYC) processes are followed.
- All transactions are compliant with domestic and international regulations, including U.S. sanctions.
- Third-party international suppliers handle the logistics and shipping.
- The company monitors vessel activity through S&P Global’s Market Intelligence Network (MINT) to flag potential violations.
Regarding the specific shipment highlighted in the WSJ report, Adani stated it was a routine commercial transaction, managed by third parties, with the port of origin listed as Sohar, Oman.
“We have met all obligations expected of a bona fide importer,” the group concluded, emphasizing its commitment to legal compliance and transparency.
While the allegations have rattled investor sentiment, the group’s categorical denial and clarification may help stabilize its market position in the coming days.
