Adani Group Stocks Rally; Adani Power Zooms Over 12%

Adani group firms ended higher on Friday, with Adani Power surging over 12% after markets regulator Sebi cleared billionaire Gautam Adani and his group of stock manipulation allegations made by US short-seller Hindenburg Research.

Shares of Adani Power zoomed 12.40%, Adani Total Gas surged 7.35%, Adani Green Energy jumped 5.33%, Adani Enterprises Ltd climbed 5.04 per cent, NDTV edged higher by 4.98%, and Adani Energy Solutions rallied 4.70% on the BSE.

Adani Power hit its 52-week high during the day.

The stock of Sanghi Industries advanced 1.41%, ACC rose 1.21%, Adani Ports went up by 1.09%, and Ambuja Cements inched up 0.28%.

The combined market valuation of all these firms stood at ₹13.96 lakh crore.

"Adani group stocks surged after Sebi cleared the group in the Hindenburg probe, triggering renewed investor confidence and strong buying interest across the conglomerate," according to Bajaj Broking Research.

In a big boost to tycoon Gautam Adani, Sebi on Thursday cleared the billionaire and his group of stock manipulation allegations made by Hindenburg Research, saying fund transfer between group companies did not fall foul of any regulation.

The Securities and Exchange Board of India (Sebi) in two separate detailed orders said the allegations of insider trading, market manipulation, and violations of public shareholding norms were found to be unsubstantiated after a detailed investigation.

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.

Sebi said fund transfer between the stated companies was a loan, which was repaid with interest in various tranches before the start of its investigation.

These transactions cannot be classified as related party transactions, which require disclosure, as was alleged by Hindenburg.

There was no violation of Sebi's disclosure norms as the transactions between Adicorp, Milestone Tradelinks, and Rehvar Infrastructure with the conglomerate's firms did not meet the definition of a related party, Sebi board member Kamlesh C Varshney said in the two orders.

It also found no violations involving substantial acquisition of securities or control that could mislead investors.

As a result, Sebi concluded that there was no basis for assigning liability or imposing penalties on the Adani entities or executives.

Adani reacted to the clean chit by calling for an apology from those who spread false narratives using Hindenburg Research's "fraudulent and motivated" report.

In a post on X accompanied by the national tricolour, Adani said the Sebi clean chit has reaffirmed what his group has always maintained -- "that the Hindenburg claims were baseless".