Adani Group stocks rally up to 20%, add Rs 1 trn in market capitalisation - Business Standard

Shares of Adani Group companies rallied 5-20 per cent on Tuesday, the first trading day after the Supreme Court reserved its orders in the matter pertaining to allegations made by US-based Hindenburg Research and their investigation by the Securities and Exchange Board of India (Sebi).
 

The 11 listed group companies added over Rs 1 trillion in market capitalisation (mcap), surpassing the Rs 11 trillion mark once again. This was the biggest single-day jump in the group’s market cap since April 11. Experts said the gains were owing to improvement in investor sentiment following last week’s proceedings in the Supreme Court and hopes that the port-to-power conglomerate will now have a clear pathway to growth.
 

Some said investors were lapping up beaten-down group shares in anticipation that Sebi had not been able to establish any major wrongdo­ing by the group. The apex court concluded on Friday the hearing on the wide-ranging allegations. Sebi told the court it would not seek any ext­ension to complete its investigation.
 

Of the 24 matters investigated by Sebi, it had concluded investigation in 22 and submitted the reports while two required information from overseas regulators, it said.
 

The court on Friday said the reports and findings by newspapers and portals did not discredit Sebi and its investigation because those could not be treated as “evidence”.
 

In its interim report submitted in May, the Supreme Court-constituted expert committee had said there had been no regulatory failure and there was “no evident pattern of manipulation” in the Adani firms.
 

However, it did point out the Sebi investigation was a “journey without destination” with challenges in seeking information and issues with the previous amendments that led to “opaque structures” in foreign portfolio investors. After the Adani-Hin­denburg matter, Sebi amended regulations on foreign portfolio in­v­e­stors, mandating granular disclosure on economic interests in them with holdings above specified thresholds. Over the past 10 months, Adani Group’s market cap has gai­ned back Rs 4.49 trillion. However, it is still close to Rs 7.9 trillion below the value the Gautam Adani-led group had on January 24, just ahead of the release of the report by Hindenburg.
 

Flagship Adani Enterprises made the biggest contribution to the group’s market cap. It surged 8.9 per cent, followed by Adani Ports & SEZ, which rose 5.6 per cent. Both Adani Total Gas and Adani Energy hit their 20 per cent upper limit. Barring Adani Ports and Adani Power, all other group stocks are down between 14 per cent and 80 per cent from their January 24 close.

First Published: Nov 28 2023 | 7:12 PM IST

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Adani Group stocks rally up to 20%, add Rs 1 trn in market capitalisation - Business Standard
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