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On Friday, September 19, shares of the Adani Group surged after the Securities and Exchange Board of India (SEBI) dismissed the allegations of stock manipulation and governance lapses raised by US short-seller Hindenburg Research. The regulator’s clean chit provided much-needed relief for the Gautam Adani-led conglomerate and triggered a wave of buying across group companies.
Adani Total Gas led the surge, soaring as much as 13% in intraday trade to hit Rs 687.35 compared to its previous close of Rs 606.80. Adani Power also jumped nearly 9% to Rs 686.95, marking a fresh 52-week high. The flagship Adani Enterprises rose 5% to Rs 2,527.55 on strong volumes.
Other group companies joined the rally, with Adani Energy Solutions up 6% to Rs 884.35; Adani Green Energy and Adani Ports gained 3% to 5%. The cement-linked companies ACC and Ambuja Cements also rose around 1%.
Despite these robust gains, analysts pointed out that several Adani stocks continue to trade well below their pre-Hindenburg highs, with prices still up to 50% lower than peak levels.
SEBI issued two detailed orders after completing its probe into the Hindenburg claims. The regulator found no evidence of insider trading, accounting fraud, or market manipulation. It concluded that loans extended to group firms had been repaid with interest before the investigation began and that no funds were diverted.
SEBI accepted Adani Group’s stance that transactions routed through entities such as Adicorp, Milestone, and Rehvar were legitimate commercial dealings and not related party transactions under existing definitions. Thus, they did not require more disclosures or shareholder approvals.
The market regulator also ruled that there were no breaches of the takeover norms or the substantial acquisition rules that could mislead the investors, concluding the case without penalties on the companies or their executives.
The latest SEBI ruling is a major legal and reputational victory for the conglomerate, nearly three years after the Hindenburg report erased over $150 billion in market value of Adani Group.
As of Thursday, the combined market valuation of Adani companies was over $150 billion, lower than its peak market valuation of $235 billion before the short-seller's allegations in early 2023.
Brokerages believe that the SEBI ruling will boost investor sentiment, especially in Adani Ports, India’s biggest private port operator, which may enhance its access to global partnerships and ESG-based funding.
While analysts are still bullish on select Adani counters, they advise caution, as volatility is expected for the group during its reputation rebuilding effort with global institutional investors.
