Adani group stocks surge up to 13% on Sebi's clean chit in Hindenburg case; Adani Total Gas, Adani Power lead gainers

Adani group stocks: A relief rally was visible in the shares of Adani group stocks in Friday's trading session on Dalal Street, following the market regulator Securities and Exchange Board of India (SEBI) 's dismissal of Hindenburg Research's allegations of stock manipulation against billionaire Gautam Adani and his companies

Adani group stocks surged up to 13% in early trade, with Adani Total Gas emerging as the top gainer.

Adani group — Top movers

Adani Total Gas share price hit the day's high of ₹687.35 as against its last closing price of ₹606.80. As of 9.45 am, the stock was trading 8.55% higher on the BSE.

Adani Power shares jumped nearly 9% in trade to ₹686.95, and Nifty 50 constituent Adani Enterprises was higher by 5% at ₹2527.55.

Other Adani group stocks — Adani Energy Solutions, Adani Green Energy and Adani Ports rose 2-3% each. They were followed by cement constituents Sigachi Industries, ACC and Ambuja Cement that added up to 1%.

Sebi clears Adani group of Hindenburg allegations

In two detailed orders, 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.

The regulator also noted that these transactions did not qualify as related party transactions (RPTs), contrary to the claims made by Hindenburg Research, and therefore did not require disclosure under existing norms.

Sebi’s orders explicitly state that Adicorp, Milestone, and Rehvar were not related parties of the Adani Group companies under the prevailing definition. Therefore, transactions routed through them did not require the disclosures and shareholder approvals mandated for RPTs.

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.

The scathing short-seller report in January 2023 triggered a stock rout that at one point eroded over $150 billion in market value for the listed Adani companies. The group market capitalisation was more than $150 billion on Thursday, as against $235 billion on the eve of Hindenburg’s report, according to a Bloomberg report.

Meanwhile, in January, Hindenburg Research founder Nathan Anderson announced he would disband the firm, citing the immense work toll.

(With inputs from agencies)

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