New Delhi: The Adani Group’s market capitalization jumped by around ₹69,000 crore on Friday after the Securities and Exchange Board of India (SEBI) gave the business a final ruling that absolved it of the Hindenburg Research report’s accusations.
The market regulator’s final decision said that there were no violations of rules about related-party transactions or trading that was meant to trick people. Because of this, SEBI did not punish anyone and let Adani Ports & Special Economic Zone Ltd., Adani Power Ltd., and Adani Enterprises Ltd. off the hook for all of their debts. Also cleared were Gautam Adani, the chairman of the Adani Group, Rajesh Adani, the managing director of Adani Enterprises, and Jugeshinder Singh, the managing director of Milestone Tradelinks Pvt. Ltd. and Rehvar Infrastructure Pvt. Ltd.
On January 24, 2023, Hindenburg Research published a report that said the Adani Group had used private companies like Adicorp Enterprises, Milestone Tradelinks, and Rehvar Infrastructure as fronts to move money into its publicly traded companies, Adani Power and Adani Enterprises.
The good news made Adani Group stocks go up. Adani Power Ltd. finished 12.4% higher, achieving its best price since August 2024. This is the company’s first stock split. Adani Total Gas Ltd. went up 7.3%, Adani Enterprises Ltd. went up 5.1%, and Adani Green Energy Ltd. went up 5.3%. This great performance happened on a day when the Nifty and Sensex, two major market indexes, were down by 0.4% and 0.5%, respectively.
According to Deven Choksey, managing director of DRChoksey FinServ, SEBI’s clean chit will make investors feel better in the coming days. “Because of these [Hindenburg] claims, a lot of international investors weren’t able to buy the shares. “But now that it has a double seal, it makes a very strong case for corporate governance and a clean chit,” Choksey said. “This will probably cause a lot of re-rating in the next few months.”