After a strong surge on Monday, December 4, shares of Adani Group stocks extended their gains on Tuesday, December 5, after a Bloomberg report stated that the US had examined Hindenburg allegations before giving a loan to the Group and found that they weren’t relevant.
“The US government concluded that short-seller Hindenburg Research’s allegations of corporate fraud against Indian billionaire Gautam Adani weren’t relevant before extending his conglomerate as much as $553 million for a container terminal in Sri Lanka,” the report noted.
This also comes after the Supreme Court reserved its verdict on the probe into the Hindenburg allegations saying it won’t consider media reports against the group as the gospel truth.
The SC remark and the US funding have been considered as positive signs by the market, leading to a strong rally in the Adani Group stocks since yesterday.
The robust gains in Adani stocks shot up the overall market capitalisation of the group to nearly 14 lakh crore. According to Capitalmarket data, the overall market capitalisation of Adani Group stocks jumped to nearly ₹13.88 lakh crore on December 5 from nearly Rs11.96 lakh crore in the previous session, rising by about ₹1.92 lakh crore in a single session.
Meanwhile, Adani Enterprises surged as much as 18.4 percent in intra-day deals to ₹2,995.80. It ended 17 percent higher at ₹2,960.10. Adani Power also rallied 17.4 percent to the day’s high of ₹545.85. It ended 15.9 percent higher at ₹538.50. Adani Ports, as well, advanced over 16.5 percent in intraday deals to ₹1,023.90. It settled 15.15 percent higher at ₹1,011.85.
Apart from the overall positive sentiment for Adani Group stocks, the renewable energy player Adani Green also announced $1.36 billion in a follow-on funding to enhance its funding pool to $3 billion, as part of its Construction Financing Framework, since the initial project financing in March 2021.
In a release, Adani Green Energy said the green loan facility will play a pivotal role in enabling the development of the company’s next milestone- the world’s largest renewable energy park at Khavda in Gujarat.
“The funding also marks a significant achievement to develop 2,167 MWat Khavdain the initial stage and shall be the stepping-stone for the future development of the Khavda renewable site. The world’s largest RE park at Khavda will not only enable AGEL’s vision of 45 GW operating renewable capacity by 2030 but will also play a critical role in India’s net zero journey,” Adani Green Energy told stock exchanges.
In 2 days, Adani Green soared the most, up 31 percent followed by Adani Energy Solutions, up 27 percent. Meanwhile, Adani Enterprises and Adani Total Gas rallied 25 percent each.
Other Adani Group stocks Adani Power, Adani Ports and Adani Wilmar rose between 12 and 22 percent each.
On 24th January, US-based Hindenburg Research published a report accusing the Adani Group of engaging in fraudulent activities to artificially inflate its stock prices. The Group has strenuously denied these allegations with a detailed rebuttal.
The court had asked Sebi to probe Hindenburg’s allegations against the Adani Group. The entire episode led to the group losing 153 billion dollars worth of market value. Over the last few months, the group has recovered a part of that value.
Sebi also informed the Supreme Court that it does not need additional time to complete its investigation into the Adani Group, with 22 of the 24 cases related to the Hindenburg matter already resolved. The probe’s remaining aspects hinge on data from foreign regulatory bodies.
A six-member expert panel appointed by the court said in its interim report in May that it saw no regulatory failure or signs of price manipulation in Adani stocks.
The group’s recovery was also advanced by the investments made by GQG Partners and Qatar Investment Authority. It also secured a $3.5 billion refinancing loan which boosted investor sentiment.
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