Adani shares slump to shed $12.5 billion as US SEC seeks court nod for summons

Adani Group shares came under sharp selling pressure on Friday, January 23, with the conglomerate losing up to $12.5 billion in market capitalisation, after a Reuters report said that the US Securities and Exchange Commission had sought permission from a New York court to directly serve summons on Gautam Adani and his nephew Sagar Adani in connection with an alleged bribery and investor fraud case.

The report said the SEC’s move followed the Union government’s refusal to comply with two earlier requests seeking assistance through diplomatic channels, prompting the US regulator to ask the court to allow service through alternative means, including via US-based legal counsel and electronic communication.

Market capitalisation, which represents the total value of a company’s outstanding shares and is widely used as a measure of investor confidence, eroded rapidly across Adani Group companies as selling intensified through the trading session.

According to Reuters, Adani Enterprises, the group’s flagship firm, emerged as the biggest percentage loser on the Nifty 50, with its shares declining 10.65 per cent to close at Rs 1,864.2, while other listed entities of the group ended the day with losses ranging between 3.4 per cent and 14.54 per cent.

A separate report by Hindustan Times said Adani Green Energy, which is alleged to have benefited from the purported bribery arrangement, recorded the steepest fall of 14.6 per cent, followed by Adani Energy Solutions, which declined 12 per cent, Adani Ports and Special Economic Zone, which fell 7.5 per cent, and Adani Power, which ended 5.5 per cent lower.

In November 2024, the SEC had filed a civil complaint alleging that Gautam Adani and Sagar Adani were involved in a scheme that included payments of about $265 million to Indian government officials to secure solar power contracts, allegations that the Adani Group subsequently rejected while indicating that it would pursue legal remedies.