Adani Enterprises, Adani Power: Adani group stocks fall up to 4%; here's why

Shares of Adani Group dropped as much as 4 per cent at the opening tick on Wednesday's trading session after the US Securities and Exchange Commission (US SEC) requested assistance from Indian authorities in its investigation of the Indian conglomerate led by Gautam Adani, reported news agency Reuters. However, the stock scripted partial recovery following the knee-jerk reaction.

According to the court filing on Tuesday, the US SEC has requested assistance from Indian authorities in its investigation of Adani Group founder Gautam Adani and his nephew Sagar Adani over alleged securities fraud and a $265 million (Rs 2,300 crore) bribery scheme. This led to another round of sell-off in Adani Group stocks.

Adani Enterprises Ltd, the flagship company of the Adani Group, tanked more than 4.30 per cent to Rs 2,123.95 on Wednesday, with its total market capitalization slipping below Rs 2.5 lakh crore. The stock had settled at Rs 2,219.45 in the previous trading session on Tuesday.

Adani Green Energy Ltd, declined 4.25 per cent to Rs 860 during the session, against its previous close at Rs 898.20 on Tuesday. The total mcap of the company slipped below Rs 1.4 lakh crore. Adani Ports & Special Economic Zone Ltd, the other Nifty50 constituent, was down 2.65 per cent to Rs 1,055.25, with a total mcap of Rs 2.3 lakh crore.

Adani Power Ltd also fell 2.6 per cent to Rs 472.50 at the opening tick while Adani Energy Solutions, formerly known as Adani Transmission Ltd and Adani Total Gas were down 2.4 per cent each to Rs 660 and Rs 564.85, respectively, in the early trade. Adani Wilmar was shed a little more than 2 per cent to Rs 250 apiece.

The SEC told a New York district court its efforts to serve its complaint to Gautam and Sagar Adani were ongoing and that it is seeking help from India's Ministry of Law and Justice to serve its complaint to Gautam and Sagar Adani. Neither man is in US custody, and they are currently located in India.