Adani Group stocks jump up to 19%, market cap nears ₹12 lakh crore; here’s why

“The US government concluded that short-seller Hindenburg Research’s allegations of corporate fraud against Indian billionaire Gautam Adani weren’t relevant before extending his conglomerate as much as $553 million for a container terminal in Sri Lanka,” the report noted.

This also comes after the Supreme Court reserved its verdict on the probe into the Hindenburg allegations saying it won’t consider media reports against the group as the gospel truth.

The SC remark and the US funding have been considered as positive signs by the market, leading to a strong rally in the Adani Group stocks since yesterday. Moreover, today’s gains have increased the Group’s market cap by over ₹72,000 crore, taking the total market capitalisation of the Adani Group to almost around the ₹12 lakh crore mark for the first time ever since the Hindenburg allegations surfaced. Its current market cap stands at ₹11.81 lakh crore.

Just in today’s deals, Adani Enterprises jumped as much as 11.6 percent to its intra-day high of ₹2,824.95 meanwhile Adani Ports gained 10.2 percent to its day’s high of ₹968.90.

However, Adani Green was the top performer, up as much as 19.4 percent to ₹1,341.60. Apart from the overall positive sentiment for Adani Group stocks, the renewable energy player also announced $1.36 billion in a follow-on funding to enhance its funding pool to $3 billion, as part of its Construction Financing Framework, since the initial project financing in March 2021.

In a release, Adani Green Energy said the green loan facility will play a pivotal role in enabling the development of the company’s next milestone- the world’s largest renewable energy park at Khavda in Gujarat.

“The funding also marks a significant achievement to develop 2,167 MWat Khavdain the initial stage and shall be the stepping-stone for the future development of the Khavda renewable site. The world’s largest RE park at Khavda will not only enable AGEL’s vision of 45 GW operating renewable capacity by 2030 but will also play a critical role in India’s net zero journey,” Adani Green Energy told stock exchanges.

Meanwhile, Adani Power, Adani Energy Solutions, Adani Total Gas and Adani Wilmar also added between 4 percent and 6.3 percent.

In 2 days, Adani Enterprises and Adani Ports jumped 18.5 percent and 16.5 percent, respectively. Adani Green, however, has soared 30 percent in 2 sessions.

Other Adani Group stocks Adani Power, Adani Energy Solutions, Adani Total Gas and Adani Wilmar rose between 6 and 12 percent each.

On 24th January, US-based Hindenburg Research published a report accusing the Adani Group of engaging in fraudulent activities to artificially inflate its stock prices. The Group has strenuously denied these allegations with a detailed rebuttal.

The court had asked Sebi to probe Hindenburg’s allegations against the Adani Group. The entire episode led to the group losing 153 billion dollars worth of market value. Over the last few months, the group has recovered a part of that value.

Sebi also informed the Supreme Court that it does not need additional time to complete its investigation into the Adani Group, with 22 of the 24 cases related to the Hindenburg matter already resolved. The probe’s remaining aspects hinge on data from foreign regulatory bodies.

A six-member expert panel appointed by the court said in its interim report in May that it saw no regulatory failure or signs of price manipulation in Adani stocks.

The group’s recovery was also advanced by the investments made by GQG Partners and Qatar Investment Authority. It also secured a $3.5 billion refinancing loan which boosted investor sentiment.

Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.

Updated: 05 Dec 2023, 11:47 AM IST