Adani Enterprises, Adani Power to Adani Ports: Adani Stocks Rally After Sebi Clean Chit In Hindenburg Row

From Adani Power, Adani Total Gas, Adani Enterprises, to Adani Ports, nearly all the Adani Group stocks rallied on Friday. The strong rally was driven by heightened investor interest after the Securities and Exchange Board of India (SEBI) cleared Adani Group and its chairman Gautam Adani of allegations by US-based Hindenburg Research.

Adani Group Stocks Rally

Nearly all the 10 Adani Group stocks rallied on Friday morning. Adani Energy Solutions Limited shares were trading 3.51% higher at Rs 867.4 per share on BSE at 9:40 am. The Adani Enterprises Limited shares were trading 3.85% higher at Rs 2494.4 per share on the BSE. Power Generation stock, Adani Green Energy Limited, shares were trading 3% higher at Rs 1008.75 per share on BSE with a market capitalisation of Rs 1,60,734.14 crore.

Shares of Adani Group's strong player in the cement industry, ACC, also surged around 0.32% higher at Rs 1863.5 per share on BSE at 9:46 am. Other Adani Group stocks like Adani Ports were up 1.48%, Adani Power was up around 6.45%, Adani Total Gas was up around 8.5%. Ambuja Cements shares were up 0.29%, AWL Agri Business shares were trading 0.81% higher.

What's Fuelling Adani Group Stocks Rally?

A strong rally in Adani Group Stocks has come a day after the SEBI gave a clean chit to Adani Group stocks in allegations made by the US-based short-seller Hindenburg Research.

The US-based firm had accused the group of financial misconduct. In 2021, Hindenburg Research released a report and claimed that entities like Adicorp Enterprises, Milestone Tradelinks, and Rehvar Infrastructure were used as channels to route money between Adani Group firms.

Sebi conducted a thorough investigation into these claims. The market watchdog found no evidence of wrongdoing or any violation. In two separate orders, SEBI noted that at the time, such transactions with unrelated parties were not considered related party dealings.

It concluded that there were no violations in the transactions in question. At that time, dealings with unrelated parties were not classified as related party transactions. This classification only changed following a 2021 amendment.

The regulator also confirmed that the loans mentioned by Hindenburg were repaid with interest. There was no evidence of funds being misappropriated or any fraudulent activities taking place. Consequently, all proceedings against the Adani Group have been dropped.

Hindenburg had alleged that four companies within the Adani Group lent Rs 6.2 billion ($87.4 million) in 2020 without proper disclosure in their financial statements. However, Sebi's findings have now cleared these allegations.