The markets reacted strongly today as major Adani group companies saw their share prices surge, buoyed by a favorable judgment from the Supreme Court. In its ruling, the apex court dismissed petitions seeking investigations into allegations of stock manipulation levelled against the business conglomerate last year.
At the core of the matter was a report published by Hindenburg Research in 2021, which accused several Adani firms of participating in practices to inflate valuations and obscure related-party transactions. It alleged lack of corporate governance and opaque dealing. The report sent Adani group shares plummeting at the time amid a wave of selling pressure.
However, the HC in recent months seemed reluctant to intervene at petitioners’ behest. And today’s unambiguous ruling has clearly vindicated Adani and quashed calls for further official probes. The group has maintained it followed all applicable rules and the claims were unfounded smears intended to damage its reputation.
Predictably, market sentiment turned quite positive as investors cheered the legal closure of uncertainties lingering from the Hindenburg controversy. Flagship firm Adani Enterprises jumped 5%, while Adani Ports gained 2% to lead sectoral indices higher. Other key units like Total Gas, Energy Solutions and Green Energy also saw double-digit price appreciations.
By midday trades, the combined market cap of Adani listed entities had surged by over Rs. 30,000 crore. This comes as a major relief after a multi-month corrective phase saw about $30 billion wiped off from shareholder wealth. The group’s publicly traded value is back above the Rs. 15 lakh crore milestone.
The SC ruling put to rest any residual overhang perceptions linked to unverified claims of misconduct. With a clean chit from the highest judicial authority and business operations firing on all cylinders, Adani is well placed to resume its ambitious expansion plans unhindered. Investor confidence in the long-term growth story has clearly been restored many fold.
It remains to be seen if the group now decides to initiate any further recourse processes against Hindenburg for reputational damages. But for the moment, this watershed judgment has dramatically reversed fortunes – both legal and financial – for one of India’s most admired yet talked about business houses. A welcome positive for fair play and rule of law in the markets.
The verdict has buoyed investor sentiment around Adani enormously. With a robust balance sheet and execution track record, the business juggernaut is raring to chart an ever more ambitious growth path in the years ahead. Market experts see this landmark decision lifting a dark cloud and paving the way for Adani’s next phase of value creation.
