Adani Group firms add $8.5 billion in market cap after some reprieve from SEBI

Adani Enterprises rose 5% in the biggest single-day rally since 12 May. Adani Power was the biggest gainer after Morgan Stanley initiated coverage of the stock.

Adani Group stocks had their best day in four months after India's market regulator dismissed some allegations by Hindenburg Research against the conglomerate and its founder billionaire Gautam Adani.

Adani Group Chairman Gautam Adani (X)

All 10 Adani Group companies listed on the exchanges rose between 1% and 13% today, with Adani Power Ltd. emerging as the biggest gainer after Morgan Stanley initiated coverage of the stock with an “overweight” rating. Flagship firm Adani Enterprises rose 5% in the biggest single-day rally since 12 May.

In all, these companies added $8.5 billion to the market capitalisation of Adani Group to take the total past $158 billion.

Even after the advance, the shares are trading below their highs seen before Hindenburg’s allegations of impropriety in January 2023, which the group has repeatedly denied. The combined market capitalisation of the group was $235 billion on the eve of Hindenburg’s report.

Adani shares surged on Friday but are yet to reclaim past peak.

Adani-Hindenburg Case

But according to Reuters, SEBI is still looking into more than a dozen other allegations, including whether Adani Enterprises, Adani Ports, Adani Energy and Adani Power had wrongfully categorised certain shareholders as public. These Adani Group companies had in their latest financial statements said that SEBI was looking into allegations of wrongful categorisation.

In April, Reuters had reported that around 30 Adani Group entities had applied to settle some of these regulatory changes.

To be sure, Gautam Adani hailed the SEBI orders on Thursday, but his ports-to-power conglomerate didn't immediately respond to Reuters' queries on Friday about ongoing investigations.