Adani Group Stocks Climb After SEBI's Clean Chit In Hindenburg Case

New Delhi:

Adani Group stocks surged by 1 to 9.6 percent on Friday, following the Securities and Exchange Board of India's (SEBI) rejection of allegations made by US short seller Hindenburg Research against Gautam Adani and his group's companies, including Adani Enterprises, Adani Ports and Adani Power.

Among the nine entities, Adani Total Gas led the rally with a remarkable 10 percent increase. The flagship company, Adani Enterprises, rose by 4.3 percent. Adani Power emerged as one of the top performers with a 7.4 percent gain. Adani Ports saw a 2 percent uptick, while both Adani Green and Adani Energy Solutions climbed nearly 4 percent each.

In January 2023, Hindenburg Research had claimed that the group utilized three companies - Adicorp Enterprises, Milestone Tradelinks, and Rehvar Infrastructure - to channel funds between various Adani group firms.

SEBI presented its conclusions in two separate orders, stating that no violations were found and noting that these transactions occurred when such dealings with unrelated parties were not classified as related party transactions. This definition was subsequently modified.

The regulator highlighted that all loans had been repaid, funds were utilized for their intended purposes, and there was no evidence of fraud or unfair trade practices, thereby terminating all proceedings against the Adani Group.

Gautam Adani stated that SEBI's findings confirmed that the short-seller's allegations were unfounded. He also expressed sympathy for investors who suffered financial losses due to the targeted report.

"After an exhaustive investigation, SEBI has reaffirmed what we have always maintained, that the Hindenburg claims were baseless. Transparency and integrity have always defined the Adani Group. We deeply feel the pain of the investors who lost money because of this fraudulent and motivated report. Those who spread false narratives owe the nation an apology," he posted on X.