Adani Stocks Fall Up To 3% On US Probe Buzz Over Iranian LPG Links; Adani Enterprises' Clarifies

Adani Stocks: The majority of Adani Group stocks were under pressure on Tuesday, June 3, after The Wall Street Journal (WSJ) reported that the US has likely issued a new investigation into Gautam Adani's port-to-power empire, alleging links between Adani entities and Iranian LPG. The flagship company, Adani Enterprises, clarified on the news, saying they are " baseless and mischievous."

Adani Stocks Fall On June 3:

In the early trade, the flagship company, Adani Enterprises, dropped by 2.5% to hit an intraday low of Rs 2452.7, while Adani Ports plunged by 2.7% to an intraday low of Rs 1428.3 apiece.

Adani Green Energy and Adani Total Gas share prices contracted by a little over 2% each to hit the day's low of Rs 988.3 apiece and Rs 675.8 apiece, respectively. Adani Green pulled back from its Rs 1,000 mark.

Also, Adani Power's share price tumbled by 1.65% to hit the day's low of Rs 545.8 apiece, followed by a 1.6% decline in Adani Energy Solutions shares that touched the day's low of Rs 861.1 apiece.

Cement stocks like ACC and Ambuja Cement were also down by 0.3% and 0.7%.

Currently, the stocks traded mixed. Stocks like Adani Green and Adani Total recovered from their early losses after Adani Enterprises' clarification.

Adani Iranian LPG Allegation:

The WSJ report on Monday said that U.S. prosecutors are investigating whether Adani's companies imported Iranian liquefied petroleum gas, or LPG, into India through the company's Mundra port. A Wall Street Journal investigation into tankers that regularly travelled between Mundra and the Persian Gulf found their behaviour often exhibited traits seen by ships seeking to evade sanctions.

WSJ's report comes after US President Donald Trump announced last month to stop all purchases of Iranian oil or petrochemical products. Trump threatened to impose secondary sanctions on countries that buy Iranian oil.

Adani Enterprises Clarification on Iranian Oil Links:

In its regulatory filing, Adani Enterprises said, "The Wall Street Journal's story of 2nd June 2025, by Ben Foldy and Dave Michaels, alleging links between Adani entities and Iranian LPG, is 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, "Adani added.

AEL highlighted that the WSJ story appears to be based entirely on incorrect assumptions and speculation. Adding it said, "Any suggestion that Adani Group entities are knowingly in contravention of US sanctions on Iran is strongly denied."

"Any assertion to the contrary would not only be slanderous but also deemed to be an intentional act to injure the reputation and interests of the Adani Group. The rights of Adani Group entities and personnel in this regard are expressly reserved. By policy, the Adani Group does not handle any cargo from Iran at any of our ports," AEL mentioned.

This includes any shipments originating from Iran or any vessels operating under the Iranian flag. Additionally, the Adani Group does not manage or facilitate any ships whose owners are Iranian. It added, "This policy is strictly adhered to across all our ports."

In FY25, Adani Enterprises' consolidated revenue stood at $11,727 million. From the total, the revenue from the LPG segment amounted to just $171.2 million - barely 1.46% of the total.

"Even while LPG constitutes a very small and operationally non-material component of our overall revenue, all LPG trade conducted by Adani entities is fully compliant with applicable domestic and international laws, including US sanctions regulations," AEL further added.

In that regard, Adani purchases LPG on contracts from reputed international suppliers. Such as:

- As an importer of LPG, the appropriate due diligence and KYC of the suppliers is undertaken to ensure that the entities/persons are not on the OFAC sanctions list. The logistics of LPG trade are managed by well-established third-party international suppliers and logistics firms, which manage shipping in accordance with global compliance standards. The supplies are under valid contracts with the supplier having specific clauses that the product should be from non-sanctioned countries.

- Further, while the incoterms are CFR, the Adani Group conducts checks through S&P Global's Market Intelligence Network (MINT) platform to ensure that the ship is not historically red flagged.

That being said, AEL clarified, "The shipment referred to in the WSJ's story was handled through a routine commercial transaction via third-party logistics partners and was supported by documentation identifying Sohar, Oman, as the port of origin."

Hence, AEL stated that Adani does own, operate or track vessels (including the alleged SMS Bros/Neel) and cannot comment on the current or past activity of vessels that they have not contracted and do not control.