Adani Green Ltd. and Adani Enterprises Ltd. are set to emerge as two key growth stories within the Adani group of companies after the Securities and Exchange Board of India dismissed all allegations brought forward by US-based short seller Hindenburg Research, according to Vinit Bolinjkar, head of research at Ventura Securities.
“Adani Green has a very strong pipeline of capex over the next 4-5 years, and the incubator Adani Enterprises would see some of the best growth stories going ahead,” Vinit told NDTV Profit. “We have examined these companies in depth. What we find is that most of the businesses are quoting a significant discount to their fair value.”
He also said that Adani Total Gas remains one of the best-valued stocks within the Adani Group companies.
Bolinjkar added that the SEBI judgement should strengthen the Adani group’s standing among foreign investors who couldn’t invest in the stocks due to the earlier allegations.
“Because of these allegations, a lot of foreign investors couldn’t invest in the stock. But now with a double seal, it provides a very strong case of corporate governance and a clean chit. This will likely lead to massive re-rating in the next few months,” he said.
This comes after SEBI, on Wednesday, dismissed charges that Adani Group had routed money through three entities, as alleged by Hindenburg in 2023.
The regulator said the transaction occurred before changes were made to the definition of related-party dealings. It also found no evidence of fraud or misuse of funds. It noted that all loans have been repaid.
Market veteran Deven Choksey said the entire fiasco underscored the need for stronger oversight of unregulated entities trying to disrupt the Indian stock market.
“What one needs to examine is that an unregulated entity is being able to make such a kind of move to destabilise the financial market. Such entities should be under regulation. Our regulation must be corrected so that these entities are not able to once again destabilise the integrity of the market,” he told NDTV Profit.