Adani Group Stocks Experience $12.5 Billion Market Cap Decline as US SEC Requests Court Approval for Summons
Shares of Adani Group companies experienced a significant decline on Friday, with some stocks plummeting by as much as 13%. This sharp drop followed reports that the U.S. Securities and Exchange Commission (SEC) has approached a New York court to obtain permission to serve summons to Gautam Adani, the group chairman, and Sagar Adani, in connection with an alleged fraud and a $265 million bribery case. The sell-off resulted in an estimated loss of $12.5 billion in market capitalization, contributing to a broader downturn in domestic equities.
Adani Group Stocks Tumble Amid Regulatory Overhang, Weak Earnings
Adani Enterprises, the flagship company of the Adani Group, saw its shares fall by as much as 10.65% during trading, ultimately closing as one of the top losers on the Nifty 50 index. On the Bombay Stock Exchange (BSE), the stock dropped 9.38%, closing at Rs 1,891.60. Other companies within the group also faced significant losses, with Adani Power declining by 8.84% to Rs 128.35, Adani Ports sliding 7.81% to Rs 1,303.35, and Adani Total Gas decreasing by 7.55% to Rs 507. Notably, Adani Ports emerged as the biggest loser on the Sensex index. Adani Green Energy Ltd experienced a staggering 13.20% drop to Rs 785 after reporting a consolidated net profit of just Rs 5 crore for the December quarter of 2025, a dramatic 99% decrease from Rs 474 crore in the same period the previous year. Additionally, shares of Adani Energy Solutions Ltd fell 10.57% to Rs 827.20, hitting a lower circuit after the company reported an over 8% decline in quarterly net profit, primarily due to increased tax expenses. Other group stocks, including Ambuja Cements, Sanghi Industries, NDTV, and ACC, also faced downward pressure.
SEC Seeks Approval to Email Summons After Delivery Hurdles
Reports indicate that the U.S. SEC informed a Brooklyn court that it has struggled to obtain assistance from Indian authorities to deliver summons to Gautam Adani and Sagar Adani. As a result, the regulator has requested court approval to serve the notices via email. The lawsuit, which was unsealed in November 2024, alleges that executives from the Adani Group violated U.S. securities laws by making false and misleading statements regarding Adani Green Energy Ltd. Furthermore, it claims that they were involved in a scheme to bribe Indian officials to secure favorable solar power contracts. U.S. law prohibits foreign companies that raise capital from American investors from engaging in bribery overseas or making misleading disclosures to solicit investments.
Adani Group Denies Charges; Analysts Flag Lingering Uncertainty
In response to the allegations, the Adani Group has categorically denied the charges, describing them as baseless and asserting that it will pursue all available legal remedies. A spokesperson for the group stated, “The allegations made by the U.S. Department of Justice and the U.S. Securities and Exchange Commission against directors of Adani Green are baseless and denied,” emphasizing the conglomerate’s compliance with all relevant laws. Market analysts noted that the timing of the SEC’s filing has unsettled investors, as many believed the group had been cleared of any wrongdoing. Ambareesh Baliga, an independent market analyst, remarked that the unexpected nature of the SEC filing could negatively impact market sentiment in the near term. The broader market also faced challenges, with the BSE Sensex falling by 769.67 points to close at 81,537.70, while the NSE Nifty dropped by 241.25 points to 25,048.65.
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