Adani Group nears Rs 11 lakh crore market cap amid ongoing investigation in the Adani-Hindenburg case
28 Nov 2023
In a remarkable market recovery witnessed on Tuesday, 28 November 2023, shares of various Adani Group entities, including Adani Enterprises Ltd., Adani Total Gas Ltd., Adani Power Ltd., Adani Green Energy Ltd., and Adani Energy Solutions Ltd., among others, propelled the market capitalization of the Gautam Adani-led conglomerate close to the Rs 11 lakh crore mark.
The group experienced a staggering addition of Rs 66,945.94 crore to its market capitalization, fueled by positive developments in the Adani-Hindenburg case.
The Supreme Court, after hearing multiple pleas related to the case, reserved its order, leading to a rise in Adani Group stocks by up to 15%. The apex court emphasized that the Hindenburg Research report should not be treated as an absolute statement of truth. Chief Justice of India, DY Chandrachud, heading the bench, suggested that the court cannot cast doubt on the Securities and Exchange Board of India's (SEBI) probe solely based on media reports. However, the court urged SEBI to complete its investigation into all 24 cases associated with the matter.
In a significant update, SEBI informed the Supreme Court that it would not seek any further extensions to conclude its probe into the Adani-Hindenburg case. Previously, in its status report on 25 August 2023, SEBI had indicated that it had completed investigations in 22 out of the 24 cases under scrutiny.
As of 10:10 am on Tuesday, 28 November 2023, Adani Enterprises shares rose by 6.42% to Rs 2,373.65, Adani Ports & SEZ advanced by 3.57% to Rs 824.80, Adani Power jumped 7.84% to Rs 428, and Adani Energy Solutions soared by 11.83% to Rs 815.50. Adani Green Energy also gained 7.36% to reach Rs 1,006.40. Adani Wilmar surged by 5.4%, while cement stocks ACC and Ambuja Cements added up to 3.5%. NDTV rose by 5.35% to Rs 216.50.
The Adani Group's market capitalization reached Rs 10,94,060.61 crore on Tuesday, 28 November 2023, trade, compared to Rs 10,27,114.67 crore on the previous Friday, 24 November 2023.
Notably, the current market capitalization reflects a 43% decline from the 24 January 2023, figure of Rs 19,19,888.44 crore, which marked the day when US-based short seller Hindenburg Research alleged the group's involvement in stock manipulation and accounting frauds.
Addressing concerns about investor protection, Chief Justice DY Chandrachud asked SEBI about its actions to safeguard investor value. In response, SEBI's counsel, Solicitor General Tushar Mehta, assured that appropriate actions had been taken against short-sellers whenever instances were identified.