Shares of Adani Group companies surged on Friday after the Securities and Exchange Board of India (Sebi) cleared the conglomerate and its chairman Gautam Adani of allegations made by US short-seller Hindenburg Research.
The gains were broad-based across the group’s listed entities. Adani Total Gas led the rally, soaring 10% on the BSE. Adani Power climbed 7%, while flagship Adani Enterprises advanced nearly 5%.
Adani Ports and Special Economic Zone rose close to 2.5%. Adani Green Energy gained 3.69%, Adani Energy Solutions rose 3.88%, Ambuja Cements and ACC added nearly 1% each, while NDTV jumped 5%.
The buying momentum came after Sebi issued two separate orders finding no violations by the Adani Group in connection with Hindenburg’s claims. The regulator said that at the time of the transactions in question, dealings with unrelated entities were not classified as related party transactions. The definition was only broadened in 2021.
Sebi also observed that the loans highlighted in the Hindenburg report were repaid with interest and no funds were siphoned off. It concluded there was no fraud or unfair trade practice, dropping all proceedings against the group.
Hindenburg had alleged in January 2021 that three companies — Adicorp Enterprises, Milestone Tradelinks and Rehvar Infrastructure — were used as channels to route money between Adani firms, effectively masking related party transactions and misleading investors.
Sebi’s findings dismissed these allegations, underscoring that no regulatory breach had occurred.
The clean chit is seen as a major relief for the Adani Group, which lost billions in market value after Hindenburg’s report but has steadily clawed back gains over the past year. The regulator’s closure of the case provides clarity and reassurance to investors, with market watchers expecting the move to open doors for renewed institutional inflows into the conglomerate.
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