The Crossbill Team
Fresh regulatory trouble in the United States sent Adani Group stocks sharply lower on Friday (January 23), wiping out as much as $12.5 billion in market capitalisation, according to a Reuters report.
The sell-off followed a move by the US Securities and Exchange Commission (SEC), which sought permission from a New York court to serve summons directly on Gautam Adani, chairman of Adani Green Energy Ltd, and his nephew Sagar Adani, the company’s executive director.
The SEC’s request came after the Union government declined two earlier appeals to assist with formally serving summons in connection with an alleged multi-million-dollar bribery scheme.
Market capitalisation refers to the total value of a company’s outstanding shares and is commonly used to assess the overall worth of publicly listed firms.
According to Reuters, Adani Enterprises, the group’s flagship company, emerged as the biggest percentage loser on India’s benchmark Nifty 50 index, with its shares plunging 10.65% to Rs 1,864.2. Other listed Adani companies also closed deep in the red, with losses ranging between 3.4% and 14.54%.
A separate report by Hindustan Times said Adani Green Energy, which allegedly stood to benefit from the purported bribery scheme, saw its shares fall by 14.6%. Adani Energy Solutions declined by 12%, while Adani Ports and Special Economic Zone fell 7.5% and Adani Power slipped 5.5%.
The SEC has approached the federal court seeking to bypass diplomatic channels and allow service of summons on Gautam Adani and Sagar Adani through their US-based legal counsel and via email. This step was taken after India reportedly challenged the SEC’s authority to issue such summonses.
The latest development stems from a civil complaint filed by the SEC in November 2024 against Gautam Adani and Sagar Adani.
The complaint alleged their involvement in investor fraud and a bribery scheme that included payments of hundreds of millions of dollars — around $265 million — to Indian government officials to secure solar power contracts.
At the time, the Adani Group rejected the allegations, describing them as “baseless”, and said it would pursue “all possible legal recourse”.
The sell-off followed a move by the US Securities and Exchange Commission (SEC), which sought permission from a New York court to serve summons directly on Gautam Adani, chairman of Adani Green Energy Ltd, and his nephew Sagar Adani, the company’s executive director.
The SEC’s request came after the Union government declined two earlier appeals to assist with formally serving summons in connection with an alleged multi-million-dollar bribery scheme.
Market capitalisation refers to the total value of a company’s outstanding shares and is commonly used to assess the overall worth of publicly listed firms.
According to Reuters, Adani Enterprises, the group’s flagship company, emerged as the biggest percentage loser on India’s benchmark Nifty 50 index, with its shares plunging 10.65% to Rs 1,864.2. Other listed Adani companies also closed deep in the red, with losses ranging between 3.4% and 14.54%.
A separate report by Hindustan Times said Adani Green Energy, which allegedly stood to benefit from the purported bribery scheme, saw its shares fall by 14.6%. Adani Energy Solutions declined by 12%, while Adani Ports and Special Economic Zone fell 7.5% and Adani Power slipped 5.5%.
The SEC has approached the federal court seeking to bypass diplomatic channels and allow service of summons on Gautam Adani and Sagar Adani through their US-based legal counsel and via email. This step was taken after India reportedly challenged the SEC’s authority to issue such summonses.
The latest development stems from a civil complaint filed by the SEC in November 2024 against Gautam Adani and Sagar Adani.
The complaint alleged their involvement in investor fraud and a bribery scheme that included payments of hundreds of millions of dollars — around $265 million — to Indian government officials to secure solar power contracts.
At the time, the Adani Group rejected the allegations, describing them as “baseless”, and said it would pursue “all possible legal recourse”.
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