Adani group stocks extend rally on SEBI relief, brokerage upgrades; Adani Power share price jumps 20%

Adani Group stocks extended their winning momentum on Monday, September 22, with Adani Power, Adani Total Gas, and Adani Green Energy surging sharply. The gains followed last session’s strong performance after market regulator SEBI gave the conglomerate a clean chit in the Hindenburg case, while positive brokerage upgrades further boosted investor confidence.

Adani Power share price emerged as the top performer among group companies, hitting the 20% upper circuit. The stock turned ex-split today in a 1:5 ratio, with the price adjusting to ₹141 apiece. It opened higher at ₹148 and continued to build on gains, eventually touching the maximum limit of ₹170.25.

Adani Total Gas also jumped 17.5% to hit the day’s high of ₹765 apiece, while Adani Green Energy surged 8.15% to ₹1,114 apiece. Other group stocks, including Adani Energy Solutions, Adani Enterprises, Adani Ports & SEZ, ACC, Ambuja Cements and Adani Wilmar (Agri Business), also rose between 1% and 7%.

The rally in select group stocks was further supported by optimistic views from global brokerage firms. Morgan Stanley recently initiated coverage on Adani Power with an ‘Overweight’ rating.

Meanwhile, Jefferies maintained a ‘Buy’ rating on the group’s flagship Adani Enterprises, raising the target price to ₹3,000, an 18.9% upside from the last close. The brokerage also reiterated its ‘Buy’ call on Adani Green, with a target price of ₹1,300 apiece.

The bullish outlook reflects a return of confidence, not only among retail investors but also across global institutional stakeholders, many of whom had largely remained on the sidelines since the Hindenburg-triggered crash

SEBI clears Hindenburg allegations

In two detailed orders issued on Thursday, Sebi stated that allegations of insider trading, market manipulation, and violations of public shareholding norms levelled against the Adani Group by short-seller Hindenburg were unsubstantiated following a thorough investigation.

The regulator noted that all loans with interest have been repaid before the start of the investigation, and there was no allegation of diversion. Sebi accepted Adani Group’s argument that the transactions were genuine commercial dealings undertaken in the ordinary course of business.

Additionally, the market regulator found no violations concerning substantial acquisition of securities or control that could potentially mislead investors and therefore, no basis for assigning liability or imposing penalties on the Adani Group or its executives.

Hindenburg, which has since shut down, in January 2023 published a damning report against the Adani Group, alleging Adicorp Enterprises Pvt Ltd, Milestone Tradelinks Pvt Ltd, and Rehvar Infrastructure Pvt Ltd were used as a conduit to route funds from various Adani Group companies to fund publicly listed Adani Power Ltd and Adani Enterprises Ltd.

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