Over ₹50,000 crore in market capitalisation of the Adani Group companies was wiped out on Friday after a media report said the US regulators were making enquiries of investors about statements made to them during presentations by the group. The market cap of group companies fell below ₹10-lakh crore — a fall over ₹80,000 crore over the week — with share prices of group companies ending 1.5-6.8 per cent lower on the NSE.

An Adani Group spokesperson said it operated a robust corporate governance framework and rejected any suggestion that its businesses did not act as per the regulations of the jurisdictions in which it operated.

“We are not aware of any such subpoena to investors. Our various issuers groups remain confident that the disclosures are full and complete as disclosed in the relevant issuer offering circulars,” the spokesperson said in a statement, in clarification to reports of US regulatory authorities enquiring from investors about statements made by the group executives to them.

Bloomberg had reported that the US Securities and Exchange Commission as well as the US Attorney’s Office in Brooklyn, New York, were making inquiries with investors, who had large holdings in Adani group companies, as to what Adani group’s executives had told them during interactions with them. According to the report, the authorities were looking into Adani’s presentations made to American investors following short-seller Hindenburg Research’s report in January.

“Adani operates a robust corporate governance framework and is strongly committed to following all laws and regulations in all of its different markets,” the spokesperson said. “We strongly reject any suggestion that the Adani Group and its businesses have not acted as per the regulations and accounting standards of the jurisdictions in which they operate.”

Following allegations of round-tripping and corporate governance lapses made by Hindenburg, the top management of the group undertook several road shows in the US, Hong Kong, Singapore as well as in India, refuting the allegations and showcasing the robustness of its operations. The group is also in the market now to raise ₹21,000 crore through institutional placements and has been meeting investors for that.

Shares of Adani group companies were big losers on the bourses on Friday. Adani Ports and Adani Enterprises closed 4.2 per cent and 6.8 per cent lower on the NSE. Adani Transmission and Adani Power also fell over 5.5 per cent each.

In India, the Adani group is being probed by the Securities and Exchange of India which will submit its final report on August 14. In May, a Supreme Court-appointed panel had said, rather ambiguously, in May that the committee couldn’t conclude that there had been any price manipulation in Adani group stocks or any regulatory failure.

In the statement, the Adani group spokesperson said, “We request the media to avoid needless speculation at this time and wait for SEBI and the Supreme Court to complete their work and submit their findings.”

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