Adani Group, once a prominent name in the business world, is now grappling with significant challenges. In the wake of bribery and fraud accusations by U.S. authorities, investors and partners are reevaluating their ties with the Indian conglomerate. Projects and investments tied to its global businesses have come under intense scrutiny.

Impact on Financing and Ratings

Leonard Law, a senior credit analyst at Lucro Analytics, stated that the U.S. indictment is likely to restrict the group's access to new financing in the near term, especially in offshore capital markets. The group has firmly denied any wrongdoing. Fitch Ratings has placed several dollar bonds issued by Adani Group companies on its negative ratings watchlist, indicating higher corporate governance risks and potential contagion risks that could affect their access to funding and liquidity.

Following the bombshell indictment last week, which led to a selloff in the conglomerate's stocks, Kenyan president William Ruto scrapped airport and electricity deals worth about $2.5 billion with the group. This is another major setback for Adani Group.

French energy giant TotalEnergies also suspended new investments linked to Adani Group on Monday, claiming it was not informed of the investigation into the alleged corruption scheme. The shares of the French oil major, which has a significant stake in Adani Green Energy and joint ventures with Adani Green, fell 2.4% on Monday.

The U.S. Legal Battle

Last week, the New York Federal Prosecutors indicted Gautam Adani, chairman of Adani Group, and seven other people on charges of paying about $265 million in bribes to Indian government officials to secure solar energy contracts. The charges also involved misleading U.S. and international investors about compliance with antibribery and anticorruption practices while raising over $3 billion in capital for these energy contracts.

In an escalation of the legal battle, Adani and his nephew, Sagar Adani, were reportedly summoned by the U.S. Securities and Exchange Commission regarding their involvement in the alleged bribery. The Adani group representatives have not yet responded to CNBC's request for comments. The company has maintained that the U.S. authorities' accusations are baseless and will seek all possible legal recourse.

In India, opposition leader Rahul Gandhi has called for Adani's arrest, and the Indian securities watchdog is reportedly probing whether the Adani group failed to disclose information about the U.S. DOJ's investigation. Proceedings in the country's parliament were suspended on Monday due to disruptions from lawmakers demanding a discussion on the Adani corruption allegations. A fresh petition has also been filed in the Indian Supreme Court seeking a probe into the bribery charges.

Stock Performance and Market Repercussions

Since the notice of indictment, shares of Adani Group's flagship firm Adani Enterprises have declined over 20%. The company at the center of the storm, Adani Green Energy, has lost more than 35%. Adani Power has shed around 15%, and Adani Ports and Special Economic Zone shares price dropped 11%. These stock price drops reflect the market's concerns and the impact of the bribery allegations on the group's financial performance.