Adani Group stocks surge by Rs 15,000 crore as Supreme Court reserves verdict on fraud allegations

Shares of Adani group companies witnessed a surge, gaining nearly Rs 15,000 crore in market capitalisation, following the Supreme Court's reserved verdict on petitions probing allegations of fraud against the conglomerate. Out of the 10 listed group firms, nine concluded in positive territory, contributing to the overall market capitalisation of the Adani Group reaching approximately Rs 10.26 lakh crore at Friday's closing, compared to Rs 10.11 lakh crore the previous day.

During the court hearing, Chief Justice of India D Y Chandrachud, along with Justices J B Pardiwala and Manoj Misra, emphasised that the Securities Exchange Board of India (Sebi) should not rely on media reports to determine Adani's alleged conduct. Sebi also declared its decision not to extend the deadline for its ongoing investigation, a move perceived by the market as a step towards resolving allegations made by Hindenburg Research, a US short seller, in a report released in January.

Adani's strategic shift

Analysts interpret the surge in stock prices as a manifestation of investor confidence in the Adani Group, signalling a shift from the Hindenburg controversy towards a focus on the group's strategic initiatives and investments, particularly in green energy and other infrastructure projects.

According to a research head at a domestic brokerage house, these developments represent a significant transition for the group, indicating a return to stability and renewed investor confidence. The market appears to be reassessing the group's value proposition, with recent positive developments and the group's commitment to business plans dispelling doubts cast by previous allegations.

Amongst the Adani stocks, Adani Enterprises, the flagship firm, saw a 2.3 per cent increase, pushing its market capitalisation to Rs 2.53 lakh crore. Notable gainers also included Adani Power, rising by 4.06 per cent and reaching a market cap of Rs 1.5 lakh crore. Other gainers were Adani Total Gas (1.2 per cent), Adani Energy Solutions (0.84 per cent), and Adani Green Energy (0.77 per cent), while Ambuja Cement was the sole stock ending in the red, down 0.31 per cent.

In recent months, the Adani Group has implemented measures to reduce leverage and continues to attract funds from global investors for investments in green energy and other initiatives. The group's listed portfolio exhibited strong growth in the second quarter, with a target of achieving an EBITDA of Rs 90,000 crore in the next 2-3 years.

(With PTI Inputs)