Adani said he deeply felt the pain of the investors who lost money because of Hindenburg's "fraudulent and motivated report". Those who spread false narratives owe the nation an apology, he said in a post on X. File photo
Adani Group shares surge after SEBI dismisses Hindenburg claims
SEBI found no violations of regulatory norms in the case, prompting Adani Group chairman Gautam Adani to state the claims were baseless
Adani Group shares rallied between 1 per cent and 9.6 per cent on Friday (September 19),buoyed by the Securities and Exchange Board of India’s (SEBI) dismissal ofallegations made by the US-based short seller Hindenburg Research.
The US-based short seller had made charges against chairman Gautam Adani and several group companies – including Adani Enterprises, Adani Ports, and Adani Power.
Shares of group entities surge
Among the nine entities in the group, Adani Total Gas led the surge with a 10 per cent jump, followed by Adani Power, gaining 7.4 per cent. Adani Enterprises, the group’s flagship firm, rose 4.3 per cent, while Adani Green and Adani Energy Solutions each climbed nearly 4 per cent each. Adani Ports posted a more modest 2 per cent increase.
The allegations
In January 2023, Hindenburg Research had alleged the group had used three companies - Adicorp Enterprises, Milestone Tradelinks, and Rehvar Infrastructure - to route money between Adani group firms. However, SEBI’s findings, issued in two separate orders has concluded that no regulatory violations had occurred.
Also read: SEBI's Adani probe hampered by lack of sharing of data by tax-haven countries: Cong
The regulator clarified that the financial transactions in question were executed at a time when such dealings with unrelated entities did not fall under the scope of related party dealings. The relevant definitions were updated only later.
No evidence of fraud
SEBI concluded its investigation into the Adani Group, stating that all loans had been duly repaid, funds were utilised appropriately, and no evidence of fraud or unfair trading practices was found. As a result, the regulator has closed all proceedings against the conglomerate.
Adani's reaction
Reacting to the decision, Gautam Adani affirmed that SEBI’s findings validate the baseless nature of the allegations made by the US short-seller. He also conveyed his sympathy for investors who suffered losses due to what he described as a deliberately misleading report.
In his post on X, Adani wrote, "After an exhaustive investigation, SEBI has reaffirmed what we have always maintained, that the Hindenburg claims were baseless."
Further he added, "Transparency and integrity have always defined the Adani Group. We deeply feel the pain of the investors who lost money because of this fraudulent and motivated report. Those who spread false narratives owe the nation an apology.”