Adani Group stocks climb after SEBI’s clean chit in Hindenburg case

New Delhi (TIP)- Adani Group stocks gained between 1 per cent and 9.6 per cent on Friday, a day after markets regulator Securities and Exchange Board of India (SEBI) dismissed allegations levelled by US short seller Hindenburg Research against Adani Group Chairman Gautam Adani and the group’s companies, including Adani Enterprises, Adani Ports and Adani Power.
Adani Total Gas led gains among the nine entities with its 10 per cent climb. Adani Enterprises, the flagship firm, rose 4.3 per cent. Adani Power, which climbed 7.4 per cent, was among the top gainers. Adani Ports rose 2 per cent, while Adani Green and Adani Energy Solutions rose nearly 4 per cent each.
In January 2023, Hindenburg Research had alleged the group had used three companies – Adicorp Enterprises, Milestone Tradelinks, and Rehvar Infrastructure – to route money between Adani group firms.
Laying out its conclusions in two orders, SEBI said there were no violations, noting that the transactions took place at a time when such dealings with unrelated parties did not qualify as related party dealings. The definition was changed later.
Noting that all loans were repaid, funds were used for intended purposes, and there was no fraud or unfair trade practice, SEBI dropped all proceedings against the Adani Group.
Gautam Adani said the SEBI findings have reinforced that the short-seller’s claims were baseless. He also expressed sympathy with investors who lost money because of the motivated report.
“After an exhaustive investigation, SEBI has reaffirmed what we have always maintained, that the Hindenburg claims were baseless. Transparency and integrity have always defined the Adani Group. We deeply feel the pain of the investors who lost money because of this fraudulent and motivated report. Those who spread false narratives owe the nation an apology,” he posted on X.
Emaar to Form JV with Adani, Not Selling Stake
Dubai-based Emaar Properties has asserted that it will not sell stakes in its Indian entity but the company is considering forming joint venture with big business houses in India including Adani Group.
In a regulatory filing on September 18 at Dubai Financial Market, Emaar Properties said the company “is no longer considering sale of any stake in its Indian entity.”
“Alternatively, the company is considering joint venture with other large companies /groups in India, including Adani Group,” it added.
Dubai-based Emaar Properties entered the Indian real estate market in 2005 in partnership with India’s MGF Development and had invested around Rs 8,500 crore through the joint venture firm Emaar MGF Land.
In April 2016, Emaar Properties decided to end the joint venture through a demerger process.
Emaar India has a large portfolio of residential and commercial spaces across Delhi-NCR, Mumbai, Mohali, Lucknow, Indore and Jaipur.
Adani Group is active in the Indian real estate market through its unlisted entities Adani Realty and Adani Properties.
The group has also bagged redevelopment projects, including Dharavi which is one of Asia’s largest slums in Mumbai.
Emaar Properties PJSC is one of the leading real estate companies in the world, with a significant presence in the Middle East, North Africa, and Asia.
The company has a land bank of about 1.7 billion square feet in the UAE and key international markets. Emaar has delivered over 1,22,000 residential units in Dubai and other global markets since 2002.