In a significant turn of events, shares of Adani group companies experienced a notable surge, climbing up to 11%, following the Supreme Court’s dismissal of petitions related to the Adani-Hindenburg issue. The verdict, delivered on January 3, 2024, stated that there was no ground to initiate a Special Investigation Team (SIT) or CBI probe.
The apex court highlighted that no valid grounds were raised to quash the Foreign Portfolio Investor (FPI) regulations, which had previously led to substantial declines in share prices. The court directed SEBI to complete the remaining two probes within three months.
Shares of Adani Enterprises, the group’s flagship firm, witnessed an impressive jump of nearly 5% in morning deals. Adani Total Gas surged over 8%, and Adani Energy Solutions experienced a gain of 9%.
Chief Justice D.Y. Chandrachud, leading a three-judge bench, reserved the verdict in November last year after considering a batch of petitions related to 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, suggesting reliance on SEBI’s probe rather than media reports.
Adani Group stocks, including Adani Ports and SEZ, Adani Wilmar, Adani Green Energy, Adani Power, Adani Total Gas, and Adani Energy Solutions, witnessed gains ranging from 3% to 11%. The overall market capitalization of the Adani Group has rebounded above Rs 15 lakh crore, although it remains below the peak of Rs 23 lakh crore.
This development marks a significant recovery for Adani Group stocks, which had faced a severe plunge, with some stocks witnessing up to an 80% decline, following the Hindenburg report. The overall market capitalization has tripled from the record low of Rs 5.8 lakh crore during the Hindenburg saga.
