The Adani Group stocks bounced back today, January 27, recovering some of the losses from last week’s sharp sell-off.
The recent surge in the share price of the companies comes as investors reacted after the flagship company, Adani Enterprises clarified that it is not involved in any legal proceedings referenced in recent media reports.
Clarification from Adani Enterprises
Adani Enterprises, on January 24 issued a statement to the stock exchanges highlighting that no allegations have been made against the company and it is not a party to any ongoing proceedings.
The clarification came after a media report cited the US Securities and Exchange Commission (SEC) seeking court approval to serve legal summons to Gautam Adani and his nephew, Sagar Adani. “There are no allegations made against the Company in, and the Company is not party to, these proceedings,” the company told exchanges.
Sector stocks leading the recovery
In the intraday trading hours, Adani Enterprises rose nearly 5%, while Adani Green Energy advanced over 3%. Adani Ports and Special Economic Zone gained 3%, and Adani Total Gas moved up 2%.
Cement stocks in the group, such as Ambuja Cements and ACC, also recorded small gains of 2.% and 0.64% respectively. The recovery extended across sectors like power, infrastructure, cement, and petroleum.
The rebound followed heavy losses on Friday, January 23. An uncertainty in Friday’s trade over potential legal developments triggered widespread selling.
The US legal backdrop
The market volatility traces back to ongoing legal matters in the United States. The SEC has been seeking alternative ways to serve legal summons to Gautam and Sagar Adani after conventional attempts via Indian authorities failed.
Earlier objections by India’s Ministry of Law and Justice, citing missing signatures and procedural rules. The SEC called these objections “baseless.”
The case involves a civil fraud allegation linked to payments to Indian officials related to Adani Green Energy. This was filed in November 2024.
This civil case is separate from a criminal case by the US Department of Justice. The case is still ongoing. However, the Adani Group has denied all allegations and said it will continue to fight the case in court.