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

Adani Group stocks gained between 1 per cent and 9.6 per cent on Friday, a day after markets regulator Securities and Exchange Board of India (SEBI) dismissed allegations levelled by US short seller Hindenburg Research against Adani Group Chairman Gautam Adani and the group's companies, including Adani Enterprises, Adani Ports and Adani Power.

Adani Total Gas led gains among the nine entities with its 10 per cent climb. Adani Enterprises, the flagship firm, rose 4.3 per cent. Adani Power, which climbed 7.4 per cent, was among the top gainers. Adani Ports rose 2 per cent, while Adani Green and Adani Energy Solutions rose nearly 4 per cent each.

In January 2023, Hindenburg Research had alleged the group had used three companies - Adicorp Enterprises, Milestone Tradelinks, and Rehvar Infrastructure - to route money between Adani group firms.

Laying out its conclusions in two orders, SEBI said there were no violations, noting that the transactions took place at a time when such dealings with unrelated parties did not qualify as related party dealings. The definition was changed later.

Noting that all loans were repaid, funds were used for intended purposes, and there was no fraud or unfair trade practice, SEBI dropped all proceedings against the Adani Group.

Gautam Adani said the SEBI findings have reinforced that the short-seller's claims were baseless. He also expressed sympathy with investors who lost money because of the motivated 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.