Shares of Adani Group companies rallied strongly on Wednesday after the Supreme Court said the SEBI investigation into Hindenburg’s allegations need not be transferred to any other agency.
The top court’s judgment rejecting petitions for an SIT probe triggered a surge in Adani stock prices, taking the conglomerate’s market capitalization above Rs 15 lakh crore.
Adani shares had gained since morning trade but rocketed higher after the Supreme Court ruling offered relief to the Group against Hindenburg’s scathing allegations of stock manipulation and accounting fraud.
The share price rise was led by Adani Enterprises, Adani Ports, Adani Green Energy and Adani Total Gas – all closing around 5-10% higher. Many Adani stocks also hit new 52-week highs in intraday trade.
Adani Group Chairman Gautam Adani termed the Supreme Court decision a “victory of truth” and said the judgment shows truth prevails. He thanked supporters in a social media post after the verdict.
The Supreme Court ruling stated that SEBI’s ongoing investigation into Hindenburg’s claims should continue and any violations unearthed will merit action. Earlier, a US probe had also not found any evidence to substantiate the short-seller’s allegations before clearing funding for Adani’s Sri Lanka port project.
Today’s stock surge has provided a boost to Adani Group against the bearish backdrop of Hindenburg’s report. But the conglomerate still faces an uphill battle to fully restore investor confidence as regulatory probes continue. For now, the Supreme Court judgment offers relief.