Investors found optimism in the report that the Supreme Court-appointed expert committee cannot conclude any regulatory failure around the Adani Group-Hindenburg case, and as a result, Adani Group stocks were in high demand on Monday. Billionaire Gautam Adani’s flagship entity, Adani Enterprises, led the way with a 17% rally from the front. Adani Enterprises is a part of the Adani Group. In its investigation into allegations of illegal activity involving money flowing into the company from offshore firms, Sebi has “come up empty.”
Nifty50 stock Adani Enterprises skyrocketed by 17% to a price of Rs 2,289.65, while the edible oil part of the conglomerate, Adani Wilmar, soared by 19% to a price of Rs 444. The prices of the eight other companies in the Adani family—Adani Ports, Ambuja Cements, ACC, Adani Power, Adani Transmission, Adani Green, Adani Total Gas, and NDTV—rose by at least 5%. These stocks include Adani Ports, Adani Power, Adani Transmission, Adani Green, and Adani Total Gas.
The market capitalization of an Ahmedabad-based conglomerate that is battling negative headlines as a result of the publication of a devastating report by a short-seller headquartered in the United States named Hindenburg surpassed Rs 10 lakh crore.
“The SC report has given confidence to investors. Other than that, the group has been planning to monetise its non-core assets and doing investor meetings. All these reasons have boosted investor confidence,” said Kranthi Bathini of WealthMills Securities.
In spite of the gains made today, he advises investors only to enter the zone if they have a tolerance for high levels of risk due to the high level of volatility.
However, the six-member panel said that there was evidence of a build-up in short positions on Adani Group stocks prior to the report of US-based short seller Hindenburg Research and that there was also evidence of benefiting from squaring off holdings when prices fell after the release of the damaging claims.
“At this stage, taking into account the explanations provided by Sebi, supported by empirical data, prima facie, it would not be possible for the committee to conclude that there has been a regulatory failure around the allegation of price manipulation,” the panel said in the report submitted to the Supreme Court.
In addition, it was said that there is a need for an efficient enforcement approach that is “coherent and consistent” with the legislative stance that Sebi has taken.
It also cannot be said that there has been a regulatory failure on the part of Sebi with regard to minimum public shareholding laws or related party transactions, as stated by the committee.
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