Adani Group shares experienced a significant uptick on Wednesday, propelled by a favorable ruling from the Supreme Court. A three-judge bench, headed by Chief Justice Dhananjaya Chandrachud, dismissed pleas for a special investigation team to take over the Securities and Exchange Board of India’s (SEBI) Hindenburg probe.
The Supreme Court expressed confidence in SEBI’s ongoing investigation and granted the market regulator three months to conclude its inquiry into Hindenburg Research’s allegations made in January of the previous year. These accusations claimed that the Adani conglomerate was involved in “the largest con in corporate history.”
Gautam Adani, Chairman of the Adani Group, expressed relief on Twitter, stating, “Truth has prevailed. Satyameva Jayate,” and extended gratitude to those who supported the group.
Over the past 12 months, the Ahmedabad-based conglomerate has actively countered Hindenburg’s claims, considering them a mere “distraction.” Senior executives, including the CFO Jugeshinder Singh and the youngest Adani scion Jeet Adani, engaged with stakeholders to emphasize the group’s strength in energy, ports, airports, and roads businesses.
Jeet Adani highlighted the substantial wealth creation opportunity within the Adani Group, showcasing the impressive Ebitda of ₹71,253 crore recorded in April-September. The conglomerate demonstrated resilience amidst distractions, focusing on execution and achieving remarkable results.
Adani Group’s listed companies experienced a continued rally, reclaiming more than half of the market value lost after Hindenburg’s report. Adani Enterprises shares reached ₹3,199, approaching the price band of the previous year’s ₹20,000 crore follow-on public offer. Adani Ports shares also hit a 52-week high, although they saw a slight dip post the Supreme Court ruling.
The conglomerate’s proactive measures over the past year, including selling shares, gaining investments, and reducing debt-to-Ebitda ratio, aimed to rebuild investor confidence. Notably, GQG Partners and International Development Finance expressed confidence in the group through substantial investments.
Jeet Adani acknowledged past concerns about debt-to-Ebitda ratios but highlighted the group’s systematic reduction from 3.3 in December 2022 to 2.5 in September 2023. Additionally, the Adani Group is evaluating bids to exit non-infrastructure businesses, emphasizing its commitment to financial discipline.
In summary, the Supreme Court’s ruling has provided a significant boost to Adani Group stocks, reaffirming investor confidence and signaling a positive trajectory for the conglomerate. The proactive measures taken over the past year showcase the group’s commitment to transparency, financial stability, and long-term growth.