New Delhi: Adani Group companies saw their market capitalisation jump by over Rs 69,000 crore in a single session on Friday, after SEBI’s clean chit in the Hindenburg case.
The regulator dismissed claims of stock manipulation and related-party misuse, boosting investor confidence and pushing Adani shares sharply higher across the board.
Adani Power leads
Adani Power led the rally, jumping 12.40 per cent and becoming the top gainer among the group’s listed entities. Adani Total Gas rose 7.35 per cent, while Adani Green Energy and Adani Enterprises gained 5.33 per cent and 5.04 per cent, respectively, as per stock exchange data.
Adani Energy Solutions climbed 4.70 per cent, completing the group of companies that recorded gains above 4.5 per cent.
Confidence among investors returns
Boosting the momentum, Morgan Stanley began coverage on Adani Power, the first recommendation from the research house in over ten years. This move is seen as a sign that confidence is returning, not just among retail investors but also across global institutional players who had largely stayed away since the Hindenburg-triggered crash.
SEBI’s clean chit a major boost for investors
The rally followed SEBI’s investigation, which found no evidence supporting the allegations made by US-based short seller Hindenburg Research in early 2023. The regulator’s clean chit is being seen as a major boost for the conglomerate and a relief for investors who had been waiting for clarity before investing again.
Adani Group firms led the top gainers on the exchanges, with trading volumes showing strong investor interest. The rise was especially sharp in energy stocks, but most of the group’s companies saw gains, from its flagship entity to its media arm.
Adani Power touched a 52-week high during the session. The stock of Sanghi Industries climbed 1.41 per cent, ACC gained 1.21 per cent, Adani Ports rose 1.09 per cent, and Ambuja Cements edged up 0.28 per cent. Together, these companies now have a combined market value of Rs 13.96 lakh crore.
“Adani group stocks surged after Sebi cleared the group in the Hindenburg probe, triggering renewed investor confidence and strong buying interest across the conglomerate,” according to Bajaj Broking Research.
Adani Slams Hindenburg’s “Baseless” Allegations
Adani Group Chairman Gautam Adani on Thursday demanded a “national apology” from those who spread the “false narratives” of Hindenburg Research. This comes after the Securities and Exchange Board of India (SEBI) gave a clean chit to the Adani Group regarding their “baseless” allegations of violating disclosure norms or constituting fraudulent practices.
In a post on X, Gautam Adani emphasised the group’s commitment to transparency and integrity, expressing empathy for investors who lost money due to the report.
“After an exhaustive investigation, SEBI has reaffirmed what we have always maintained, that the Hindenburg claims were baseless. Transparency and integrity have always defined the Adani Group. We deeply feel the pain of the investors who lost money because of this fraudulent and motivated report. Those who spread false narratives owe the nation an apology,” he posted on X.
The clean chit brings significant relief to the Adani Group, ending months of scrutiny. “Our commitment to India’s institutions, to India’s people and to nation building remains unwavering. Satyamev Jayate! JAI HIND!” Adani Group Chairman added on X.
SEBI clears Hindenburg allegations
The market regulator on Thursday refuted the allegations made by the US Short seller Hindenburg against the Adani Group. SEBI concluded that there is no violation of the listing agreement or SEBI Listing Obligations and Disclosure Requirements (LODR), and the impugned transactions do not qualify as “related party transactions”.
According to SEBI, “Reading of Listing Agreement and SEBI (LODR) Regulations reveals that transactions between a listed company with unrelated party is not covered within the definition of “related party transactions” as it existed during the time when impugned transactions took place, though included specifically after the 2021 amendment.