Adani group adds Rs 1 trillion in mcap, biggest single-day jump since April

29/11/2023

Mumbai, nov 28: Shares of Adani Group companies rallied between 5 and 20 per cent on Tuesday, the first trading day after the Supreme Court reserved its order in the matter pertaining to allegations made by US-based Hindenburg Research in their investigation by the Securities and Exchange Board of India (Sebi).
The 11 listed group companies added over Rs 1 trillion in market capitalisation to Rs 11.3 trillion. This was the biggest single-day jump in the group’s market cap since April 11.
Experts said the gains were on the back of improvement in investor sentiment following last week’s proceedings in the Supreme Court and hopes that the port-to-power conglomerate will now have a clear pathway to growth. Some said investors were lapping up beaten-down group shares in anticipation that Sebi has not been able to establish any major wrongdoing by the group.
The apex court concluded the hearing on the wide-ranging allegations made by Hindenburg on Friday. The market regulator submitted to the apex court that it would not seek any extension for completing its investigation.
Of the 24 matters investigated by Sebi, it had concluded investigations in 22 matters and submitted the reports while two investigations required information from overseas regulators, it said.
The SC on Friday said that the reports and findings by newspapers and portals do not discredit Sebi and its investigation as they cannot be constituted as ‘evidence’.
In its interim report submitted in May, the Supreme Court-constituted expert committee had said that there had been no regulatory failure and there was ‘no evident pattern of manipulation’ in the Adani firms.
However, it did point out the Sebi investigation as a ‘journey without destination’ with challenges in seeking information and issues with the previous amendments which led to ‘opaque structures’ in Foreign Portfolio Investors (FPIs).
After the Adani-Hindenburg matter, Sebi amended the Foreign Portfolio Investor (FPI) regulations mandating granular disclosure on economic interest in FPIs with holdings above specified thresholds.
Over the last 10 months, Adani Group’s market cap has gained back Rs 4.49 trillion, however, it is still close to Rs 7.9 trillion below the market value the Gautam Adani-led group had on January 24, just ahead of the release of the scathing report by Hindenburg.
Flagship Adani Enterprises made the biggest contribution to the group’s market capitalisation, as it surged 8.9 per cent, followed by Adani Ports & SEZ which rose 5.6 per cent. Both Adani Total Gas and Adani Energy hit their 20 per cent upper limit. Barring Adani Ports and Adani Power, all other group stocks are down between 14 per cent and 80 per cent from their January 24 close.

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