Mumbai, January 3, 2024 – Adani Group stocks experienced a significant upswing, with gains of up to 11%, after the Supreme Court dismissed petitions related to the Adani-Hindenburg issue. The verdict, delivered on January 3, 2024, concluded that there was no basis to initiate a Special Investigation Team (SIT) or CBI probe, causing a positive market response.
The apex court emphasized that there were no valid grounds to quash the Foreign Portfolio Investment (FPI) regulations, which had previously led to a sharp decline in share prices. Additionally, the court directed the Securities and Exchange Board of India (SEBI) to complete the remaining two probes within the next three months.
Adani Enterprises, the flagship firm of the Adani Group, saw a nearly 5% jump in morning deals. Adani Total Gas surged over 8%, and Adani Energy Solutions registered a notable 9% increase. Adani Ports and SEZ, along with Adani Enterprises, emerged as the top gainers on the Nifty 50, witnessing a rise of 2% and 5%, respectively. Other Adani group stocks, including Adani Wilmar, Adani Green Energy, Adani Power, Adani Total Gas, and Adani Energy Solutions, also recorded positive gains ranging from 3% to 11%.
The Supreme Court’s decision comes after more than a month of reserving judgment on a batch of petitions concerning allegations of stock price manipulation by the Adani Group. The court emphasized that the Hindenburg Research report should not be treated as an absolute truth and upheld SEBI’s authority to investigate the matter.
Adani Group stocks had faced a significant decline, dropping as much as 80% following the Hindenburg report. However, the recent rebound has seen the overall market capitalization of the Adani Group surpassing the Rs 15 lakh crore mark, though it remains below the peak of Rs 23 lakh crore. The market capitalization has tripled from the record low of Rs 5.8 lakh crore during the Hindenburg saga, indicating a gradual recovery in the group’s financial standing.
The Supreme Court’s verdict has provided a much-needed boost to the Adani Group, restoring investor confidence and signaling a positive outlook for the company. The dismissal of the petitions and the reaffirmation of SEBI’s authority to investigate the allegations have helped dispel concerns surrounding the Adani-Hindenburg issue.
The Adani Group has been at the center of controversy since the release of the Hindenburg Research report, which alleged various irregularities and raised questions about the group’s corporate governance practices. The report had a significant impact on the stock prices of Adani Group companies, leading to a sharp decline in market capitalization.
The recent surge in Adani Group stocks reflects the market’s confidence in the Supreme Court’s verdict and the group’s ability to overcome the challenges posed by the Hindenburg allegations. The court’s decision to dismiss the petitions and allow SEBI to continue its investigations provides a clear path for resolving the issue and restoring stability to the market.
As the Adani Group continues to navigate through this challenging period, it is crucial for the company to maintain transparency and address any concerns raised by investors. By cooperating fully with SEBI and ensuring a thorough investigation, the group can demonstrate its commitment to good corporate governance and regain the trust of the market.
Overall, the Supreme Court’s verdict has had a positive impact on the Adani Group stocks, leading to a significant surge in share prices. This development marks a turning point for the company and sets the stage for a potential recovery in market capitalization. As the remaining probes are completed, it will be important for the Adani Group to continue focusing on rebuilding investor confidence and strengthening its corporate governance practices.