Shares of Adani Group companies have recouped nearly half of the market cap losses suffered after the Hindenburg Research report as the conglomerate allayed investor concerns and prepaid debt.
The group's market capitalisation crossed Rs 10 lakh crore on Monday. The day's surge was led by Adani Enterprises Ltd., which closed about 19% higher as the group stocks rose following the Supreme Court panel's report that didn't find any regulatory failure in the Adani-Hindenburg case.
The group added nearly Rs 82,000 crore in market valuation in a single day in one of the best sessions since Jan. 24.
Shares of Adani Green Energy Ltd. have risen over 100% since Feb. 27 low, when the group started holding roadshows with investors. Adani Power Ltd., Adani Enterprises Ltd., and Adani Transmission Ltd. have surged 77.90%, 94.90%, and 22.20%, respectively. By comparison, the NSE Nifty 50 rose 5.30% during the period.
Other Adani Group stocks like Adani Ports and Special Economic Zone Ltd., Adani Total Gas Ltd., and Adani Wilmar Ltd. advanced 29.80%, 1.20%, and 29%, respectively.
Overall, the group's market value has rebounded 49.2% since the Feb. 27 lows.
The Jan. 24 Hindenburg Research report had alleged stock manipulation, wiping out more than $140 billion from the market capitalisation of the conglomerate. The Adani Group rejected the report, calling it "misinformation" and a "calculated attack on India".
Supreme Court Panel Says No Systemic Risk
According to the expert committee constituted by the Supreme Court, foreign portfolio investors in the Adani Group stocks are compliant with SEBI's regulations and there has been no regulatory failure in the Adani-Hindenburg matter.
The panel also said the group does not pose any systemic risk.
"The events related to Adani Group companies did not have any significant impact at the systemic level," the panel led by Justice Abhay Manohar Sapre said in the report. BQ Prime has reviewed a copy of the report.
While the shares of the group companies saw a significant price decline on account of selling pressure subsequent to the Hindenburg report, and may have dominated the media attention, the market remained largely stable and resilient, the report said.
The representation of the Adani Group companies in the indices is "relatively minor" and given the limited free float market capitalisation of the group companies, the recent events did not pose any systemic market-level risk, according to the committee.
Earlier, Mauritian Financial Services Minister Mahen Kumar Seeruttun rejected the allegations made by Hindenburg about Adani Group using Mauritius as a haven for creation of shell companies.
Speaking at the Mauritian Parliament, Seeruttun said allegations of the presence of shell companies in Mauritius are "false and baseless".
"According to the law, shell companies are not allowed in Mauritius," he said. All global business companies licensed by the Financial Services Commission have to meet substance requirements on an ongoing basis, he said.
Disclaimer: AMG Media Networks Ltd., a subsidiary of Adani Enterprises Ltd., holds 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.
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