Source: The Economic Times
Adani Group Shares Gain After SEBI Decision
On Friday, the stocks of Adani Group increased after the Securities and Exchange Board of India (SEBI) declared in their favour and allowed chairman Gautam Adani to continue leading the company, regarding a case connected to the U.S. short seller Hindenburg Research.
In total, nine Adani companies were up 1% to 9.6% on Friday. Adani Total Gas saw a 10% rise in its stock. Adani Power stocks increased 7.4%, while Adani Enterprises, the flagship of the Adani group, increased 4.3% after the news broke. Adani Ports was up 2.0%. Adani Green Energy and Adani Energy Solutions added nearly 4% respectively.
Hindenburg Research Allegations
In January 2023, Hindenburg Research alleged that the Adani Group was using three companies—Adicorp Enterprises, Milestone Tradelinks, and Rehvar Infrastructure—to transfer money among its firms.
Emerging markets investment strategist Chris Wood of Jefferies has trimmed his stake in Reliance Industries—which has gained 15% in 2025 so far—and shifted funds into Ambuja Cement, part of the Adani Group, in his India long-only portfolio. In addition to Reliance, Wood has also exited Axis Bank and cut his exposure to ICICI Bank, REC, and JSW Energy.
SEBI Findings
SEBI said there had been no infraction in its two orders. The regulator said that at the time of the transaction such transactions were not considered “related party transactions” under the rules in effect at the time, and the definition did not change until afterward. SEBI also held that repayment of loans occurred, the funds were used for their intended purpose, and that no fraud or unfair trading took place.
Complaints Against Adani Group Terminated
Accordingly, SEBI terminated all complaints against the Adani Group and its affiliates. In response to the decision, Gautam Adani stated that the order proved the claims of Hindenburg were inaccurate. He also offered condolences to investors who parted with money following the issuance of the report.
“After an exhaustive investigation, SEBI has reaffirmed what we have always maintained, that the Hindenburg claims were baseless. Transparency and integrity have always defined the Adani Group. We deeply feel the pain of the investors who lost money because of this fraudulent and motivated report. Those who spread false narratives owe the nation an apology,” he posted on X.
Market Analysts’ View
Market analysts are of the view that SEBI’s decision will increase investor confidence and help to alleviate the uncertainty about Adani stocks that had been experienced since the start of 2023.
