Adani group shares including the flagship Adani Enterprises Ltd, Adani Total Gas Ltd, Adani Green Energy Ltd, Adani Ports & Special Economic Zone Ltd (Adani Ports, Adani Wilmar Ltd and Adani Power Ltd climbed up to 16 per cent in early trade on Wednesday.
At the closing on the BSE, Adani Ports and Adani Power on Wednesday hit the upper circuit, ending the day with a 5 per cent gain each. Adani Wilmar also rose 3.97 per cent.
The surge in Adani Group stocks came ahead of a crucial verdict from the Supreme Court regarding a batch of pleas seeking a court-monitored investigation into allegations made by US-based short-selling firm Hindenburg Research against the Adani Group.
The conglomerate’s market capitalisation crossing the Rs 15 lakh crore mark.
Supreme Court Verdict
The Supreme Court Wednesday endorsed the investigation being carried out by market regulator SEBI into allegations against the Adani Group of companies raised in a report by US-based short seller Hindenburg, saying that the power of the court to enter regulatory domain of SEBI is “limited”.
“SEBI must carry out the investigation to its logical end,” the court said, adding that “no ground was made out for transfer of probe” from the regulatory board.
“SEBI has completed investigation in 20 out of 22 matters. Taking into account the assurance of Solicitor General, we direct SEBI to complete the investigation in the other two cases preferably within three months,” the court said.
A bench led by Chief Justice of India D Y Chandrachud also stated, “No valid grounds were raised to direct SEBI to revoke its amendments on FPI (Foreign Portfolio Investments) and LODR (Listing of Obligations and Disclosure Requirements) regulations.”
Since the Hindenburg report was released on January 24 last year, Adani stocks have seen a roller-coaster ride. At one point last year, the combined market capitalisation of all 10 Adani stocks had fallen to less than half but gradually recovered following a spate of positive news, including investment by white knight GQG Partners.
While acting on PILs made in the aftermath of the Hindenburg report, the apex court had formed a six-member panel headed by former Supreme Court judge Justice AM Sapre that filed a report in May saying it cannot conclude whether there was any regulatory failure on the part of Sebi.
Later on in August, Sebi had submitted its investigation report to the court on allegations made against the group.
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