Adani Group shares surge after Supreme Court panel’s clean chit

The prices of Adani Group shares surged in the stock markets on Monday as investors Turned optimistic after the Supreme Court-appointed committee examining the Hindenburg allegations gave a clean chit to the company and observed that there was no regulatory failure on the part of market regulator SEBI.

Nifty50 stock Adani Enterprises zoomed 17% to Rs 2,289.65, while the conglomerate’s edible oil arm Adani Wilmar shot up 19% to Rs 444. The remaining 8 stocks in Adani’s family – Adani Ports, Ambuja Cements, ACC, Adani Power, Adani Transmission, Adani Green, Adani Total Gas and NDTV – rallied a minimum of 5%.

The market capitalisation of the Ahmedabad-based group is reported to have gone past the Rs 10 lakh crore mark.

The Supreme Court committee said in its report said, “At this stage, taking into account the explanations provided by SEBI, supported by empirical data, prima facie, it would not be possible for the committee to conclude that there has been a regulatory failure around the allegation of price manipulation,” the committee of domain experts said in the report submitted to the Supreme Court.

On the other hand, several entities took short positions prior to the publication of Hindenburg’s report and benefitted by squaring off their positions as the prices plummeted. This needs to be investigated, the report states.

Key findings of the Supreme Court Committee:

*Adani Group has disclosed all beneficial owners

*No charge by SEBI that they are rejecting Adani’s declaration of beneficial owners.

*Retail shareholding of Adani has gone up after the Hindenburg report.

*No prima facie violation of existing rules or laws found.

*There were short selling profits made by some entities after the Hindenburg allegations which need to be investigated.