Supreme Court Releases Verdict On Adani-Hindenburg Report

The Supreme Court stated decision on petitions demanding a probe into fraud charges against Adani Group companies, as highlighted in Adani-Hindenburg report, caused Adani Group stocks to soar in intraday trade on Wednesday, January 3.

After the Supreme Court’s decision on petitions seeking an investigation into fraud allegations against Adani Group companies, Adani Group stocks shot up to 12 percent on Wednesday, January 3, increasing the group’s overall market capitalization over ₹15 lakh crore, as detailed in the Hindenburg Research report.

The Supreme Court denied petitioners’ main demands in their attempt to sabotage the ongoing SEBI probe against claims made by Hindenburg Research.

More Details On SC Rulling

The Supreme Court stated in its decision that it had limited authority to intervene in SEBI’s regulatory framework. No justifiable reason was presented to order SEBI to reverse the modifications it made to the FPI and LODR regulations. There are no problems with the regulations.

According to the ruling, the Government of India and SEBI should investigate whether the Hindenburg report on short selling violates any laws, and if so, they should pursue legal action.

Shares of Adani Enterprises, the group’s main company, closed 2.45 percent higher at ₹3,003.95 after the ruling, which is considered as favorable for the Adani Group. Adani Ports’ shares increased 1.39 percent to ₹1,093.50.

While Adani Power’s shares closed 5% higher at ₹544.65, while Adani Energy Solutions’ shares increased 11.60% to ₹1,183.90. Adani Total Gas’s shares shot up 9.84 percent to ₹1,099.05, while Adani Green Energy’s shares increased 6% to ₹1,698.75. Adani Wilmar’s stock increased 3.97 percent to ₹381.05.

Additionally, Ambuja Cements’ shares increased 0.94 percent to ₹535.60, while NDTV’s shares surged 3.66 percent to ₹281.60. ACC’s stock increased by 0.10 percent to ₹2,270.

Supreme Court

The total market capitalization of Adani Group equities increased to around ₹15.11 lakh crore on Wednesday, per Bloomberg statistics.

On November 24, 2023, a reserved judgment on the PILs was rendered. The arguments contested the claims that the Adani Group, which is seen as being connected to the Modi administration, inflates the value of its shares, and that following the release of the short seller Hindenburg Research, the share values of several group companies dropped dramatically.

SC Ordered SEBI To Investigate Into The Report

Following the Hindenburg report, the top court ordered the capital markets regulator Securities and Exchange Board of India (SEBI) to look into any possible securities law violations by the Adani Group in March 2023. An expert committee with six members, led by former Supreme Court judge Justice AM Sapre, was also established by the court.
About $60 billion of billionaire Gautam Adani’s personal wealth was erased from his conglomerate last year after his business was accused of market manipulation and accounting fraud in January 2023 by a US-based short seller Hindenburg Research research.

The US-based short seller Hindenburg Research said in January 2023 that the Adani Group is participating in accounting fraud, manipulating stock prices, and using tax havens improperly.

The report’s release caused the shares of the Adani group to plunge in value, wiping off about $150 billion in market value. The Adani group has refuted all of the accusations. The Supreme Court ordered market regulator SEBI to investigate the Hindenburg accusations and provide its conclusions.

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