Adani-Hindenburg Case Verdict: Adani Group stocks rally up to 12%; overall m-cap jumps over ₹15 lakh crore

Adani Group stocks surged up to 12 per cent on Wednesday, January 3, shooting up the overall market capitalisation of the group over ₹15 lakh crore, after the Supreme Court's verdict on petitions seeking an investigation into fraud allegations against Adani Group companies, as outlined in the Hindenburg Research report.

The Supreme Court rejected key demands of petitioners seeking to derail the ongoing SEBI investigation into allegations raised by Hindenburg Research.

In its verdict, the Supreme Court said, “The power of this court to enter the regulatory framework of SEBI is limited. No valid grounds were raised to direct SEBI to revoke its amendments on FPI and LODR regulations. The regulations do not suffer from any infirmities.”

The Government of India and the SEBI to look into whether there is any infraction of law by the Hindenburg report on short selling and if so, take action in accordance with the law, according to the judgement.

Also Read: Supreme Court refuses SIT probe in Adani-Hindenburg case

Following the verdict, which is seen as favourable for the Adani Group, Shares of Adani Energy Solutions surged 11.60 per cent to end at ₹1,183.90 while the shares of Adani Total Gas surged 9.84 per cent to ₹1,099.05.

Shares of Adani Green Energy climbed 6 per cent to ₹1,698.75 while the shares of Adani Power ended 5 per cent higher at ₹544.65.

Shares of Adani Wilmar rose 3.97 per cent to ₹381.05 and shares of NDTV jumped 3.66 per cent to ₹281.60.

Shares of flagship firm Adani Enterprises closed 2.45 per cent higher at ₹3,003.95 while those of Adani Ports rose 1.39 per cent to ₹1,093.50.

Shares of Ambuja Cements rose 0.94 per cent to ₹535.60. Shares of ACC inched up 0.10 per cent to ₹2,270.

Also Read: Adani-Hindenburg Verdict: SC says ‘petitions lack adequate research’ | Chronology of Adani saga

According to Bloomberg data, the overall m-cap of Adani Group stocks rose to nearly ₹15.11 lakh crore on Wednesday. 

The judgement on the PILs was reserved on November 24, 2023. The pleas claimed the allegations that the Adani Group, considered close to the Modi government, inflated its share prices and, after the report of the short seller Hindenburg Research, the share value of various group entities fell sharply.

Catch Adani Hindenburg Case Verdict Live Updates Here

In March 2023, the top court directed the capital markets regulator Securities and Exchange Board of India (SEBI) to investigate any violations of securities law by the Adani Group in the wake of the Hindenburg report. The court had also set up an expert committee comprising six members, headed by former top court judge Justice AM Sapre.

Billionaire Gautam Adani's conglomerate saw almost $60 billion of his personal wealth erased last year after US-based short seller Hindenburg Research report accused his group of market manipulation and accounting fraud in January 2023.

In January 2023, US-based short seller Hindenburg Research alleged that Adani Group is involved in accounting fraud, stock price manipulation, and improper use of tax havens.

The report triggered a stock market rout of the Adani group shares that erased close to $150 billion in market value at its lowest point. On its part, the Adani group has rejected all allegations. Following the Hindenburg allegations, the Supreme Court asked market regulator SEBI to look into the matter and submit its findings.

Also Read: Stocks to Watch: Adani Group, Hero MotoCorp, Coal India, LIC, DMart, Hind Zinc

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