After the Securities and Exchange Board of India (SEBI) rejected claims made by US-based short-seller Hindenburg Research, Adani Group stocks—including Adani Enterprises, Adani Green Energy, Adani Power, and Adani Ports & SEZ—rose as much as 9% during Friday’s trading session. Although related-party transactions did occur through companies like Adicorp, Milestone, and Rehvar, the regulator stated that they were adequately declared and compliant with current laws.
“After an extensive investigation, SEBI has reaffirmed what we have always maintained — that the Hindenburg claims were baseless,” said Adani Group Chairman Gautam Adani in a post on X, applauding the agency’s conclusions. The Adani Group has always been characterized by transparency and integrity.
Adani Enterprises locked up its 5% upper circuit at ₹2,521.35, while Adani Power gained 8.53% to a high of ₹684.70. Adani Green Energy increased 4.47% to ₹1,022.70, Adani Ports & SEZ increased 2.58% to ₹1,448.75, and Adani Energy Solutions increased 4.35% to ₹874.40. Sanghi Industries saw a 1% increase, cement manufacturers ACC and Ambuja Cements saw a 1% increase, while NDTV saw a 5% increase to ₹129.55.
The US short-seller Hindenburg Research’s January 2023 report, which destroyed $150 billion in market value from Adani companies, was roughly three years prior to the SEBI order. Earlier this year, Hindenburg founder Nate Anderson dissolved his crew.
“We deeply feel the pain of investors who lost money because of this fraudulent and motivated report,” Adani said in response to the probe’s conclusion. The country is entitled to an apology from those who propagate incorrect information.
SEBI came to the conclusion that there was no violation of Section 12A of the SEBI Act, the Listing Agreement, or the SEBI (LODR) Regulations. It stated that there was no evidence of related-party activity in the purported transactions involving Adicorp Enterprises, Milestone Tradelinks, and Rehvar Infrastructure.
Despite the fact that Adani Ports had given Adicorp loans, the regulator discovered no proof of round-tripping or money being diverted into Adani firms that were listed. After much investigation, SEBI has finally put an end to one of the most controversial parts of the Hindenburg-Adani story, providing the conglomerate with much-needed respite.
