Blitz Bureau
NEW DELHI: Shares of the Adani Group companies surged by up to 10 per cent on September 19 following the Securities and Exchange Board of India’s (SEBI) clean chit into the allegations made by US short-seller Hindenburg Research. As of 11 a.m., with a 7.99 per cent surge to Rs 655.45, Adani Total Gas Ltd. led the pack in terms of gains. Adani Power Ltd surged 7.02 per cent to Rs 675.65. While Adani Enterprises Ltd rose 3.68 per cent to settle at Rs 2,490.40, Adani Ports and Special Economic Zone Ltd reached Rs 1,429.60, up 1.19 per cent. At Rs 1,007.85, Adani Green Energy Ltd. was up by 2.96 per cent.
On September 19, Morgan Stanley initiated an “overweight” rating on Adani Power Ltd, setting a target price of Rs 818, which suggests a 29 per cent upside. The firm cited timely project execution and new power purchase agreements as key factors. Adani Power’s capacity and EBITDA are projected to increase by 2.5 and 3 times, respectively, by FY2033. Year to date, Adani Ports and Special Economic Zone Ltd, and Adani Power shares have increased by up to 17.14 per cent and 28.12 per cent.
In a final order that exposes the falsity of the claims widely amplified by the short-seller, India’s market regulator concluded that the Adani Group did not violate any rules by routing funds through two private firms, effectively dismissing claims of hidden related party transactions and fraud.
The probe, which was prompted by a Supreme Court directive following the Hindenburg report in January 2023, centered on transactions between publicly listed Adani companies — Adani Ports & Special Economic Zone, Adani Power and Adani Enterprises — and two private, unlisted entities: Milestone Tradelinks and Rehvar Infrastructure.