Adani Group Stocks Rise After SEBI's Clean Chit — Adani Power, Adani Total Gas Top Gainers

Shares of Adani Group companies rose during early trade on Friday after the Securities and Exchange Board of India said in its final order that allegations by the Hindenburg case could not be established.

The regulator imposed no penalty and cleared Adani Ports & Special Economic Zone Ltd., Adani Power Ltd., and Adani Enterprises Ltd. of any liabilities. Adani Group Chairperson Gautam Adani and Adani Enterprises Managing Director Rajesh Adani were also cleared.

No liabilities were also found on Jugeshinder Singh, Milestone Tradelinks Pvt. Ltd. and Rehvar Infrastructure Pvt. Ltd.

As per the SEBI order, no violation was found on account of related-party transactions. The market watchdog also found no manipulative transactions or unfair trade practices.

The case stemmed from Hindenburg’s Jan. 24, 2023 report, which alleged that Adani Group entities used private firms — Adicorp Enterprises Pvt. Ltd., Milestone Tradelinks, and Rehvar Infrastructure — as conduits to route funds into listed companies Adani Power and Adani Enterprises.

Adani Total Gas Ltd. was the top gainer in the pack, with shares rising over 8%. Adani Power, which is set to go ex-trade for its maiden stock split on Monday, jumped 7.6%.

The flagship Adani Enterprises Ltd. soared 3.4% and Adani Ports Ltd. popped 2%. Both were the top performers in the Nifty 50 basket.

The benchmark Nifty and Sensex were down 0.2% and 0.3% respectively.

SEBI's clean chit to the Adani Group will get reflected on the sentiment of investors in the coming days, Deven Choksey, managing director of DRChoksey FinServ Pvt., told NDTV Profit.

“Because of these (Hindenburg) allegations, a lot of foreign investors couldn’t invest in the stock. But now with a double seal, it provides a very strong case of corporate governance and a clean chit. And this will likely lead to massive re-rating in the next few months," he said.