Did Adani Group Companies' Shares Really Surge After SEBI's Clean Chit?
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Synopsis
The recent surge in Adani Group shares has left investors buzzing, especially after SEBI cleared them of serious allegations. What does this mean for the future of the group and its investors? Let's delve into the details.
Key Takeaways
- Adani Group shares surged significantly following SEBI's clean chit.
- SEBI found no merit in allegations regarding hidden transactions.
- Morgan Stanley has a positive outlook on Adani Power.
- Year-to-date performance shows substantial growth for key Adani stocks.
- Regulatory compliance remains crucial in maintaining investor trust.
Mumbai, Sep 19 (NationPress) Shares of the Adani Group companies experienced a remarkable surge of up to 10 percent on Friday, following the Securities and Exchange Board of India’s (SEBI) clean chit regarding allegations made by the US short-seller Hindenburg Research.
By 11 a.m., Adani Total Gas Ltd. led the gains with a 7.99 percent increase to Rs 655.45. Adani Power Ltd. followed closely with a 7.02 percent rise to Rs 675.65. Meanwhile, Adani Enterprises Ltd. climbed 3.68 percent to close at Rs 2,490.40, and Adani Ports and Special Economic Zone Ltd. reached Rs 1,429.60, up 1.19 percent. Adani Green Energy Ltd. also saw a 2.96 percent increase, settling at Rs 1,007.85.
On the same day, Morgan Stanley issued an “overweight” rating for Adani Power Ltd, setting a target price of Rs 818, indicating a potential 29 percent upside. The firm highlighted timely project execution and new power purchase agreements as critical factors. Projections suggest that Adani Power's capacity and EBITDA could grow by 2.5 and 3 times, respectively, by FY2033.
This year, shares of Adani Ports and Special Economic Zone Ltd and Adani Power have appreciated by up to 17.14 percent and 28.12 percent, respectively.
In its conclusive order, which debunked the claims propagated by the short-seller, India’s market regulator determined that the Adani Group had not breached any regulations regarding fund routing through two private firms, effectively dismissing allegations of undisclosed related party transactions and fraud.
The investigation, initiated by a Supreme Court directive following the Hindenburg report in January 2023, focused on dealings between publicly listed Adani companies — Adani Ports & Special Economic Zone, Adani Power, and Adani Enterprises — and two private unlisted firms: Milestone Tradelinks and Rehvar Infrastructure.
Hindenburg had claimed that these private entities were merely fronts to obscure transactions that should have been disclosed as related party transactions (RPTs) to shareholders.
However, SEBI's thorough investigation, as outlined in its final order, found no merit in these allegations. The regulator's findings hinged on the LODR Regulations as they existed during the inquiry period (2018-2023).
SEBI clarified that at the time, the law specified related party transactions only for direct relationships between a company and its related parties. While Milestone and Rehvar had business connections, they were not legally recognized as related parties to the Adani firms under the applicable regulations.
Point of View
Transparency and regulatory compliance are paramount. The recent findings by SEBI regarding Adani Group provide a reassuring message to investors about the integrity of the market. As the National Editor-in-Chief, we remain committed to supporting the values of accountability and trust in corporate governance.
NationPress
20/09/2025
Frequently Asked Questions
What caused the surge in Adani Group shares?
The surge was primarily due to SEBI's clean chit, which cleared the Adani Group of allegations made by Hindenburg Research.
Is the Adani Group facing any legal issues?
As of now, SEBI has concluded that the Adani Group did not violate any regulations, dismissing previous allegations.
What is the future outlook for Adani Power?
With an 'overweight' rating from Morgan Stanley and a projected increase in capacity and EBITDA, the outlook appears positive.
How have Adani shares performed year-to-date?
Adani Ports and Special Economic Zone Ltd and Adani Power have seen increases of up to 17.14% and 28.12% respectively.
What was the role of the Supreme Court in this investigation?
The Supreme Court directed the investigation by SEBI into the allegations made against the Adani Group.
