Adani Group stocks saw an increase in trading on Wednesday, boosted by a positive decision from the Supreme Court.
On Wednesday, stocks from the Adani Group’s 10 listed companies surged to their upper circuits, reaching 52-week highs. This jump followed the Supreme Court’s dismissal of requests for a special investigation team to assume control of the Hindenburg probe from Sebi, instilling optimism among investors.
Investigation
Chief Justice Dhananjaya Chandrachud, heading a three-judge bench, stated that there were no valid reasons to question the Securities and Exchange Board of India’s investigation. The court found no merit in allowing another law enforcement agency or a special investigation team to handle the matter.
The court granted the markets regulator a three-month window to conclude its investigation into accusations made by US short seller Hindenburg Research last January, alleging that the conglomerate was involved in the “largest con in corporate history.”
Truth has prevailed
Gautam Adani expressed his relief on Twitter, celebrating the court’s decision with the words, “Truth has prevailed. Satyameva Jayate.” He extended his gratitude to everyone who supported the group.
Over the past year, the Ahmedabad-based conglomerate has actively addressed Hindenburg’s allegations, considering them a “distraction.” In the third week of December, a group of about a dozen senior executives, led by Jugeshinder Singh, the group’s CFO, and the youngest Adani scion, Jeet Adani, engaged with around 200 individuals, including fund managers, analysts, and self-styled investors in Pune.
the Adani Group achieved ₹71,253 crore
Jeet Adani expressed, “There’s a tremendous opportunity for wealth creation within the Adani Group,” as he delved into narrating the narrative of the group’s ventures in energy, ports, airports, and roads.
Reflecting on the past four years, he shared, “There has been a systematic program ongoing for at least the past four years. To be honest, I didn’t even know that until I saw the half-yearly numbers that came out. I was shocked to see that when compared to last year, we have already surpassed the entire full-year Ebitda in the first half.”
The listed businesses of the Adani Group achieved an Ebitda of ₹71,253 crore from April to September.
Highlighting the resilience amid distractions, Jeet Adani stated, “That is the demonstration of everything that has happened this year, every distraction that has happened. We have just kept our heads down and focused on one thing we are good at. And that is execution,” during the presentation, as reported by Mint.
10 listed companies extended their upward trend
Shares of the Adani Group’s 10 listed companies extended their upward trend on Wednesday, marking a significant recovery that has now surpassed more than half of the market value lost in the weeks following Hindenburg’s impactful report.
In the morning on Wednesday, Adani Enterprises’ shares reached a peak of ₹3,199 each, falling within the price range of last year’s ₹20,000 crore follow-on public offer (FPO), which the conglomerate had to cancel after Hindenburg’s report was made public.
Adani Ports shares also achieved a 52-week high, reaching ₹1,144 per share in anticipation of the petitions being dismissed. However, post the ruling, the stock surrendered nearly all of its intraday gain of 6%, trading at ₹1,082.4, reflecting a 0.4% increase at 12 pm.
Following the upper circuits, other group stocks experienced profit booking. Adani Total Gas hit the 10% upper circuit at ₹11,00.95 for a while but was trading at ₹1049.75, up 4.88% around noon. Adani Power, initially locked at the 5% upper circuit, later trimmed some gains, trading at ₹534.75, showing a 3.1% increase.
“In a challenging market where execution is demanding, and collaboration across various stakeholders—local communities, government, customers, and more—is essential, we’ve carved out a niche for ourselves. Our ability to navigate these stakeholder relationships, create world-class assets, run them with excellence, and handle finances in a world-class manner is something we take pride in, and it’s unmatched by anyone else,” shared Jeet Adani with investors last month.
Over the past year, the Adani Group has made concerted efforts to streamline its operations and regain the trust of investors. In the weeks following the Hindenburg report, all 10 listed Adani companies experienced daily lower circuits.
To instill confidence, the group’s promoters took actions such as selling shares in both listed and private businesses. This included offloading a majority stake in Adani Capital and Adani Housing Finance to Bain Capital.
To read such great articles, stay connected with us on Khabar Khzana