Adani Group’s market value increased by $9.7 billion to $122.9 billion as six of its stocks hit maximum price limits.
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The group experienced a significant surge in its shares on Monday, marking the largest increase since the release of the damning report by US-based short seller Hindenburg Research in January. Additionally, the combined market capitalization of all its listed entities surpassed the ₹10-lakh crore milestone.
This upturn came after a panel appointed by the Supreme Court stated that it did not uncover any evidence of “regulatory failure” regarding accusations of price manipulation in group’s stocks and violations of minimum public shareholding regulations. This development brought a positive outlook for the organization, leading to increased investor confidence and a notable rise in market value.
The group experienced a surge in its stocks, leading to a significant rise in its market value by $9.7 billion to $122.9 billion, the highest increase since August 30 of the previous year when it reached $271.7 billion. However, despite this positive development, the overall market capitalization of the group remains ₹9 trillion lower than that on January 24 when the Hindenburg Research report emerged.
The primary factor driving the market value growth was Adani Enterprises, which saw a substantial 18.92% increase to ₹2,316 per share. This alone accounted for slightly over half of the market capitalization increase of ₹81,998 crore.
Adani Wilmar and Ports also saw notable increases of 10% and 6%, respectively. Ambuja Cements, Adani Power, Adani Transmission, Adani Green, Adani Total Gas, ACC, and NDTV witnessed a surge of 5% each in their stock prices.
This propelled the conglomerate’s overall market capitalization to Rs 10.16 lakh crore. Contrastly, nifty gained 0.6%.
The Committee
Before the release of the Hindenburg report on January 23, the market capitalization of the group amounted to $258 billion or 19.2 lakh crore.
Following the significant decline in their stocks that resulted in a loss of approximately $150 billion in market value, the Supreme Court established an expert committee on March 2.
The committee was led by former Supreme Court judge Justice AM Sapre, which included notable individuals such as veteran bankers OP Bhat and KV Kamath, securities law expert Somasekharan Sundaresan, technology expert Nandan Nilekani, and retired Justice JP Devadhar.
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SEBI Report on Adani Group
According to the expert panel, the Securities and Exchange Board of India (SEBI) did not find any evidence of artificial trading or “wash trades” during the period when the respective group’s stocks experienced a significant increase in value.
However, the panel did find evidence of a buildup in short positions on group’s stocks before the report from the US-based short seller was published. Profits were gained by closing these positions after the stock prices declined following the allegations made in the report.
Analysts remain cautious in determining whether group’s stocks have fully recovered. According to Bahini, it is premature to conclude if the stocks will reach their previous record highs. The outcome would depend on the submission of the market regulator’s final investigation report and the sustainability of the group’s growth momentum.
Last week, the group stocks faced pressure following the announcement by global index services provider MSCI to remove Adani Transmission and Adani Total Gas from the MSCI Global Standard Index as part of its May rebalancing. This event impacted the stocks’ performance earlier in the week.
