The market reaction was fast and emphatically – but this time in favor of Adani. The combined market capitalization of the group increased by more than RS 46,000 crore to RS 13.8 Lakh Crore, with individual shares that jumped no less than 10% while investors welcomed the end of the overhang of the regulations that had weighed the conglomerate since January 2023.
In a destructive definitive order that systematically dismantled the accusations of the short seller, the Indian market giver concluded that the Adani Group has not violated any rules by routing funds through private companies, causing claims of hidden transactions with hidden parties and the accounting fraud that had caused the original market report.
The regulator investigated specific accusations that Adani Group -Promotors used companies such as Adicorp Enterprises, Milestone Tradelinks and Rehvar infrastructure to manipulate funds within the group, router money to listed entities such as Adani Power and Adani companies. Sebi, however, stipulated that these were legitimate loan transactions, in which all funds were returned, with interest before the investigation even started.
The justification has already attracted renewed institutional support. Morgan Stanley started coverage about Adani Power as his “top choice” with an overweight rating and called the company “a good illustration of Turnaround in India’s business history, with resolution on the most regulatory issues and multiple value-accetive acquisitions.” The Global Investment Bank has established a target price of RS 818, a premium of 30% to the closing price on Thursday, which projects that “APL will produce strong profit growth that is powered by timely completion of projects and more PPA victories in the medium term.”
Jefferies also jumped back in and set up on Adani Green with an RS 1,300 price objective, and noted that “ratings with a 63% discount on their January 2023 Peak 1-year-old attacker EV/EBITDA, creating space for UpSte on Execution.” “Now the business research will be, as usual Sunny to Sunny. Agarwal by SBI Securities.” Today’s rally was a one-off reaction of the knee, but in the future the Fundamentals will stimulate the performance. “Agrarwal identified Adani-Havens, Ambuja and Named Wet”, while “,”, “,”, “,” Unlocking in Adani companies by its real estate and airport companies emphasized.
The euphoria was visible in the 10 listed shares of the group. Adani Totaal Gas rose more than 9%, Adani Power rose by 7%and Adani Enterprises collected 4%, with Adani Green, Adani Energy and Adani Ports, each of which traded 2-3%higher.
The Hindenburg report in January 2023 had accused the Adani group of “Accounting fraud” and “stock manipulation”, which activated a catastrophic market crash that demanded more than $ 100 billion in market value at its peak. The allegations not only damaged the finances of the conglomerate, but also fueled SEBI investigations and a broader debate about the standards for corporate governance among Indian companies inflamed.
The controversy even reached the highest level of market regulation, with questions about the then Sebi chef Madhabi Puri Buch’s alleged connections with the case, as a result of which political dimensions were added to what started as a short-buyer attack.
With Sebi’s last order that now confirms “no evidence of misconduct” with regard to the allegations of the American short seller, the Adani Group can finally close this bruising chapter and focus on company fundamentals, a prospect that investors have large betting on the conglomerate comeback story.
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