Shares of Adani Wilmar remained largely unchanged on Thursday, January 16, despite the broader rally in other Adani Group stocks. The muted response in Adani Wilmar’s stock came after Adani Commodities LLP, a promoter entity of the company, announced the sale of a 13.51 percent stake in the company.
In a regulatory filing, Adani Commodities LLP disclosed the details of the stake sale, revealing that it had sold a total of 17,56,01,314 equity shares of face value ₹1 each, representing 13.51 percent of Adani Wilmar’s total issued and paid-up equity share capital. The sale took place over two days, on January 10, 2025 and January 13, 2025, through an Offer for Sale (OFS) mechanism, conducted via the designated OFS windows of the BSE Limited and the National Stock Exchange of India Limited (NSE). The sale complied with the “Comprehensive Framework on Offer for Sale (OFS) of Shares through the Stock Exchange Mechanism,” as stipulated by the Securities and Exchange Board of India (SEBI).
While the sale itself was in accordance with regulatory requirements, the announcement did not seem to have a positive impact on Adani Wilmar’s stock price. The shares opened slightly higher by 0.5% at ₹275, which was the day’s highest price, but later fell by about 1% to hit a low of ₹272. The stock is now over 33% down from its 52-week high of ₹408.70, which was reached in February 2024. At the same time, Adani Wilmar has advanced by just 5% from its 52-week low of ₹257.95, which occurred earlier this week on January 14. This reflects a continued period of subdued performance for the stock.
Over the last year, Adani Wilmar has seen a decline of more than 24%, and it has shed 11% in January alone. Despite a recovery trend over the past few months, the stock’s recent performance reflects investor caution and specific concerns surrounding the company.
Broader Adani Group Rally Amid Hindenburg Research Closure
On the other hand, shares of other Adani Group companies surged in early trading on January 16, following news that Hindenburg Research, the US-based short-seller behind the significant sell-off in Adani Group stocks in 2023, had disbanded. This announcement brought a wave of optimism, with most of the group’s stocks jumping by more than 5% during intra-day trading.
Hindenburg Research had made headlines in early 2023 when it published a controversial report accusing the Adani Group of market manipulation and improper use of offshore tax havens. The report triggered a massive sell-off in Adani Group stocks, leading to a market value loss of over $100 billion. The Adani Group vehemently denied the allegations, calling the report baseless and malicious.
In addition to the Hindenburg report, the Adani Group was also embroiled in further controversy in November 2024, when US prosecutors indicted Adani Group Chairman Gautam Adani in New York over alleged involvement in a multibillion-dollar bribery and fraud scheme. The continued legal challenges and allegations had a significant impact on investor sentiment, causing severe volatility in Adani Group stocks throughout 2023.
However, the announcement from Nathan Anderson, founder of Hindenburg Research, that the firm would cease operations appeared to provide relief to investors. Anderson confirmed in a note that he had made the decision to disband Hindenburg Research, which had previously been at the center of the turmoil surrounding Adani Group’s stock prices. This news likely contributed to the broader rally seen in Adani Group stocks on January 16, 2025.
While Adani Wilmar remained flat, other Adani Group companies, such as Adani Power, Adani Enterprises, and Adani Ports, experienced significant gains on the back of this positive news. The broader optimism surrounding the closure of Hindenburg Research has provided a much-needed boost to these stocks, helping them recover from the significant losses suffered in the wake of the Hindenburg report and the subsequent market sell-off.
