Supreme Court Verdict On Adani – Hindenberg Case

Adani Group stocks experienced a significant surge in intraday trading on January 3, following the Supreme Court’s decision regarding petitions seeking an inquiry into fraud allegations against Adani Group companies, as highlighted in the Hindenburg Research report.

On that day, Adani Group stocks rose by up to 12%, contributing to an overall market capitalization exceeding ₹15 lakh crore. The Supreme Court rejected key demands from petitioners attempting to disrupt the ongoing SEBI investigation into the allegations made by Hindenburg Research.

Related Read| After OCCRP Allegations, Adani Group Shares Declined

The court emphasized its limited authority to intervene in SEBI’s regulatory framework, stating that no valid grounds were presented to compel SEBI to revoke its amendments on FPI and LODR regulations, as these regulations were deemed sound. The judgment called for the Government of India and SEBI to investigate potential violations of law by the Hindenburg report on short selling and take appropriate action.

Following this favorable verdict for the Adani Group, flagship firm Adani Enterprises saw a 2.45% increase in its shares, closing at ₹3,003.95. Adani Ports shares rose by 1.39% to ₹1,093.50, while Adani Energy Solutions surged by 11.60% to ₹1,183.90. Adani Power and Adani Total Gas also experienced increases of 5% and 9.84%, respectively.

Shares of Adani Green Energy climbed by 6% to ₹1,698.75, and Adani Wilmar saw a rise of 3.97% to ₹381.05. Additionally, NDTV shares increased by 3.66% to ₹281.60, Ambuja Cements rose by 0.94% to ₹535.60, and ACC inched up by 0.10% to ₹2,270.

Bloomberg data revealed that the overall market capitalization of Adani Group stocks reached nearly ₹15.11 lakh crore on that Wednesday. The Public Interest Litigations (PILs) verdict, reserved on November 24, 2023, dismissed claims that the Adani Group, perceived as close to the Modi government, had artificially inflated its share prices.

In March 2023, the Supreme Court directed SEBI to investigate potential securities law violations by the Adani Group in response to the Hindenburg report. A committee, led by former top court judge Justice AM Sapre, was established for this purpose. The Hindenburg Research report, released in January 2023, had accused the Adani Group of market manipulation and accounting fraud, leading to a substantial decline in the group’s market value.

Throughout the previous year, Gautam Adani’s personal wealth, linked to his conglomerate, suffered a significant decline of almost $60 billion following the Hindenburg Research report. The Adani Group, however, has consistently denied all allegations made against it.

Also Read | After OCCRP Allegations, Adani Group Shares Declined

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