The Adani Group appears to have found 'relief' in the recent clearance by market regulator SEBI regarding allegations raised in the report by US short-seller Hindenburg Research. Following this ‘clean chit’, the share prices of Adani companies skyrocketed. In just two trading sessions, the total market capitalization of ten Adani Group companies has increased by a staggering 1.7 lakh crore rupees.
On Monday, the market capitalization of these companies surpassed 15 lakh crore rupees. Investors in Adani Power shares have reaped the most significant gains in these sessions, with the company's stock price surging by nearly 35 percent over the two sessions.
Gautam Adani shares message
In the wake of receiving SEBI's 'clean chit', the group's Chairman and Founder, Gautam Adani, has announced that they will focus on innovation in the coming days. Additionally, he emphasized their intention to concentrate on long-term sustainability.
According to a news agency report, in a message sent to employees, he stated, “Sebi’s comprehensive investigation has concluded by rejecting all allegations contained in the Hindenburg report from January 2023. It was your unwavering faith, your strength, and your belief in the company that sustained us throughout this period. This outcome belongs not only to the Adani Group but also individually to each of you who stood by us, and for that support, I am deeply thankful.”
In January 2023, Hindenburg Research published a report alleging irregularities, share price manipulation, and illegal transactions by the Adani Group, which led to a sharp fall in stock prices and significant losses for retail investors. The Adani Group consistently denied these allegations. SEBI reportedly found no wrongdoing regarding related-party transactions
This led to a significant plunge in Adani companies' share prices at that time, resulting in retail investors losing a substantial portion of their investments. However, the Adani Group repeatedly denied the allegations raised by Hindenburg Research.
