Adani Stocks Lose $12.5 Billion After US SEC Summons Move

Introduction: A Sharp Market Reversal

Shares of Adani Group companies experienced a severe downturn on Friday, January 23, 2026, erasing a combined $12.5 billion in market capitalization. The sell-off was triggered by a procedural but significant move from the U.S. Securities and Exchange Commission (SEC), which asked a court for permission to serve summons directly to founder Gautam Adani and executive Sagar Adani. This development is part of an ongoing U.S. investigation into allegations of fraud and a $165 million bribery scheme, renewing investor concerns about the conglomerate's legal challenges abroad.

The SEC's Unconventional Request

The core of the issue lies in the SEC's filing in a U.S. court. The regulator is seeking an alternative method to deliver legal summons after its attempts through official channels were unsuccessful. According to the court documents, the Indian government had previously refused two formal requests to serve the summons on the Adani executives. The SEC argued that this refusal makes traditional service methods unworkable and that serving the summons via email to their U.S.-based lawyers and their business addresses is necessary to advance the civil case.

Background of the Allegations

The legal proceedings stem from a U.S. indictment unsealed in November 2024. U.S. authorities accused Adani Group executives of participating in a scheme to pay bribes to Indian officials. The alleged purpose of these payments was to secure favorable contracts for the purchase of electricity produced by Adani Green Energy, a subsidiary of the group. U.S. law, specifically the Foreign Corrupt Practices Act (FCPA), prohibits companies that raise capital from American investors from paying bribes to foreign officials to secure business. The SEC's civil case runs parallel to a criminal indictment from the U.S. Department of Justice, which remains open.

A Brutal Day on the Stock Market

The market's reaction to the news was swift and harsh. Adani Enterprises, the group's flagship firm, was the top percentage loser on the Nifty 50 index, with its shares falling 10.65% to close at Rs 1,864.2. The decline was broad-based across the conglomerate, with group company shares settling down between 3.4% and 14.54%. Adani Green Energy was among the hardest hit, plunging by as much as 13.20% during the day.

Weak Earnings Compound Investor Woes

Adding to the pressure from the SEC's actions were disappointing quarterly results from key group companies. Adani Green Energy reported a nearly 99% collapse in its consolidated net profit for the December 2025 quarter, which stood at just Rs 5 crore compared to Rs 474 crore in the same period a year earlier. The company attributed the sharp decline to higher expenses, particularly a significant jump in finance costs. Similarly, Adani Energy Solutions Ltd (AESL) posted an over 8% decline in its net profit, further dampening investor sentiment.

Adani Group's Stance

Throughout the investigation, the Adani Group has consistently denied the allegations. In public statements, the conglomerate has described the charges as "baseless" and affirmed its commitment to complying with all applicable laws. The group has also stated its intention to pursue "all possible legal recourse" to defend itself. It did not provide an immediate comment on the SEC's latest court filing to serve summons via email.

Market Analysis and Outlook

According to independent market analyst Ambareesh Baliga, the SEC filing appeared to have caught investors by surprise. "Market participants assumed there's nothing pending and that the group has been cleared, so the SEC filing seems to have come out of the blue," he noted. With no clear timeline for the next legal steps, the uncertainty is expected to linger over the stocks for the near future, especially given that the broader market sentiment was already weak.

Conclusion: Uncertainty Looms

The sharp fall in Adani Group's market value underscores the market's sensitivity to the ongoing U.S. investigation. The SEC's determination to proceed with the case, even by seeking unconventional methods to serve summons, marks a critical phase in the legal proceedings. The focus now shifts to the U.S. court's decision on this request, which will dictate the next steps in a legal battle with significant implications for one of India's largest business empires.