Shares of Adani Group companies traded mixed on Wednesday after a Reuters news report stated that the U.S. Securities and Exchange Commission (SEC) has sought assistance from Indian authorities in its ongoing investigation into alleged securities fraud and bribery involving Gautam Adani and his nephew Sagar Adani.
In early trade, Adani Green Energy fell the most among group companies, slipping 1.9 percent to Rs 881. The group's flagship firm Adani Enterprises was down 0.4 percent at Rs 2,211, while Adani Ports edged 0.2 percent lower to Rs 1,083.
Meanwhile, Adani Energy Solutions gained 0.5 percent to Rs 680, Adani Total Gas was up 0.4 percent at Rs 582, and Adani Power rose 0.3 percent to Rs 486. The broader market was largely steady, with the benchmark NSE Nifty 50 up 0.2 percent at 22,990 points in early trade, recovering from mild losses.
Fresh legal scrutiny
The Reuters news report, citing a New York district court filing on Tuesday, said the SEC is seeking assistance from India’s Ministry of Law and Justice to serve its complaint to Gautam and Sagar Adani. The U.S. regulator told the court that its efforts to serve the complaint were ongoing, and that neither of them is in U.S. custody as they are currently located in India.
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This development comes after U.S. federal prosecutors in Brooklyn had unsealed an indictment in November 2024, accusing Adani of bribing Indian officials to secure electricity contracts through Adani Green Energy and misleading U.S. investors about the company's anti-corruption practices. The SEC had filed a separate civil lawsuit, apart from the criminal charges brought by the U.S. Department of Justice.
Adani Group has repeatedly denied the allegations, calling them "baseless," and has vowed to seek "all possible legal recourse."
Adani stocks had witnessed a sharp sell-off in November 2024 when the bribery allegations first surfaced, with steep declines in both Adani Group shares and dollar-denominated bonds, with a few securities marking the biggest decline since the 2023 Hindenburg Research report.
However, the stocks rebounded in the following sessions, helped by the group's aggressive debt reduction measures and fresh fundraising initiatives. In August 2024, Adani Energy Solutions raised $1 billion through a QIP, while Adani Enterprises raised $500 million via a share sale in October. The group also planned to raise at least $1.5 billion in dollar bonds under Adani Green Energy and Adani Energy Solutions by early 2025, primarily for debt refinancing.
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