Adani Enterprises, the leading company of the group, witnessed a significant surge of almost 5 percent in its shares during morning trading. Adani Total Gas experienced a remarkable increase of over 8 percent, while Adani Energy Solutions saw a notable rise of 9 percent.
Adani group companies saw a reduction in their gains during afternoon trading following the Supreme Court’s dismissal of petitions related to the Adani-Hindenburg issue. The court stated that there were no valid grounds to overturn the FPI regulations, which had previously caused a significant decline in share prices. On January 3, 2024, the Supreme Court directed SEBI to complete the remaining two probes within three months.
Despite cooling off from their earlier highs, the stocks still maintained firm gains of up to 7 percent. Adani Enterprises, the flagship company, initially rose by 7 percent in the morning but later traded 2 percent higher at noon. Adani Ports and SEZ experienced a modest increase of nearly half a percent. Other Adani group stocks, including Adani Wilmar, Adani Green Energy, Adani Power, Adani Total Gas, and Adani Energy Solutions, recorded gains ranging from 2 to 6 percent.
Additional stocks from the Adani Group, such as NDTV, ACC, and Ambuja Cements, were also experiencing positive trading activity, with gains reaching as high as 6 percent.
The Adani Group’s allegations of stock price manipulation have finally been addressed by the top court, which delivered its verdict over a month after reserving judgment in November. In response to the Supreme Court’s decision, the chairman of the Adani Group took to X (formerly Twitter) to express his gratitude to those who supported them, stating that the truth has prevailed.
He also emphasized the group’s commitment to contributing to India’s growth story. On March 2, 2023, the apex court instructed SEBI, the market regulator, to continue investigating the allegations raised in the Hindenburg report, specifically looking into potential stock price manipulation in violation of existing laws. Chief Justice D.Y. Chandrachud, leading a three-judge bench, had reserved the verdict on this case in November of the previous year.
The recent observation made by the Supreme Court emphasizes that the Hindenburg Research report should not be regarded as an absolute truth. It suggests that the highest court cannot question the Securities and Exchange Board of India’s investigation into the matter solely based on a few media reports.
Following the Hindenburg report, the stocks of Adani Group experienced a significant decline, reaching a staggering 80 percent. However, there has been a notable recovery in the Adani Group stocks, with companies like Adani Ports fully recuperating from their Hindenburg-induced losses and reaching new highs. Other companies within the group have also managed to reduce their losses.
Although the overall market capitalisation of the Adani Group has surpassed the Rs 15 lakh crore mark once again, it still remains considerably lower than its peak of Rs 23 lakh crore. Nevertheless, the market capitalisation has successfully tripled from its record low of Rs 5.8 lakh crore, which was witnessed during the Hindenburg controversy.