Adani Power, AEL, Adani Green Energy: Adani stocks rally up to 9% as SEBI dismisses Hindenburg case

Adani stocks, including Adani Enterprises, Adani Green Energy Ltd, Adani Power, and Adani Ports & SEZ, surged up to 9 per cent in Friday’s trade after market regulator SEBI dismissed Hindenburg Research’s allegations that funds were routed through Adicorp, Milestone, and Rehvar to manipulate Adani’s listed companies. SEBI noted that while related-party transactions existed, they were properly disclosed and accounted for under the rules.

“After an exhaustive investigation, SEBI has reaffirmed what we have always maintained, that the Hindenburg claims were baseless. Transparency and integrity have always defined the Adani Group,” Gautam Adani, Chairman of Adani Group, said in a post on X. 

Adani Power jumped 8.53 per cent to hit a high of Rs 684.70. Adani Enterprises hit its 5 per cent upper circuit limit at Rs 2,521.35. Adani Ports and Special Economic Zone Ltd was up 2.58 per cent at Rs 1,448.75. Adani Green Energy Ltd advanced 4.47 per cent to Rs 1,022.70. Adani Energy Solutions Ltd added 4.35 per cent to Rs 874.40. Cement makers ACC and Ambuja Cements added 1 per cent each. Sanghi Industries also rose 1 per cent, while NDTV climbed 5 per cent to Rs 129.55.

Nate Anderson, founder of US short-seller Hindenburg Research, disbanded his team in January this year. His January 2023 report on the Adani Group had wiped out $150 billion in market value from the conglomerate’s listed firms.

Responding to the SEBI findings, Adani said, “We deeply feel the pain of investors who lost money because of this fraudulent and motivated report. Those who spread false narratives owe the nation an apology.”

SEBI said there was no violation of the Listing Agreement or SEBI (LODR) Regulations, as the impugned transactions did not qualify as “related party transactions.” It also found no breach of Section 12A of the SEBI Act or SEBI (PFUTP) Regulations, as alleged in the SCN.

“Once it is held that there is no violation of the above two main issues, it logically leads to the conclusion that there is no violation of all other related violations alleged against the Noticees, which relate to non-disclosure/approval of the related party transaction,” SEBI said.

The allegations had claimed that Adani Ports & Special Economic Zone Ltd, Adani Power Ltd, and Adani Enterprises Ltd structured transactions through Adicorp Enterprises, Milestone Tradelinks, and Rehvar Infrastructure to conceal related party dealings, allegedly circumventing the then Listing Agreement and SEBI (LODR) Regulations.

SEBI’s probe, which traced the flow of funds, found that while Adani Ports had advanced loans to Adicorp Enterprises, there was no evidence that these funds were round-tripped or diverted improperly into the Group’s listed entities. The investigation closes one of the most debated chapters of the Hindenburg-Adani controversy, offering the conglomerate relief after nearly three years of scrutiny.