Adani Power, Enterprises, and Green Energy Share Update: Stock Movements Amid Hindenburg Allegations
Adani Group companies, including Adani Enterprises Ltd, Adani Power Ltd, and Adani Green Energy Ltd, are in the spotlight following the group’s strong rebuttal of recent allegations made by Hindenburg Research. The Adani Group has categorically rejected claims regarding the alleged seizure of $310 million in Swiss accounts, asserting that these allegations are baseless and unfounded.
The Adani Group, led by billionaire Gautam Adani, stated that it is not involved in any Swiss court proceedings and that none of its accounts have been subjected to any form of seizure. In a detailed response, the group emphasized that the alleged court order did not mention its companies and that they have not received any requests for clarification from any regulatory body. The statement highlighted the group’s commitment to transparency and compliance with all applicable laws.
Background of the Allegations
The controversy stems from a report by Hindenburg Research, which cited Swiss criminal court records suggesting that an Adani frontman had invested in opaque funds based in the British Virgin Islands (BVI), Mauritius, and Bermuda. These funds were reportedly linked to significant holdings in Adani stocks. Hindenburg’s allegations have reignited scrutiny of the Adani Group’s financial practices, which have been under investigation since the initial allegations surfaced in January 2023.
In its response, the Adani Group labeled the allegations as “preposterous, irrational, and absurd.” The group accused Hindenburg of orchestrating a campaign to damage its reputation and market value. The statement reiterated that the Adani Group operates with a transparent overseas holding structure that is fully disclosed and compliant with all relevant laws.
Market Reaction
Despite the allegations, Adani Group stocks have shown resilience. On the trading day prior to the allegations, several stocks within the group saw notable gains. Adani Enterprises closed 1.47% higher at ₹2,980.90, while Adani Power surged 3.57% to ₹649.60. Adani Ports and Adani Energy Solutions also experienced increases of 2.65% and 0.79%, respectively. This positive market performance highlights a growing confidence among investors in the face of adversity.
The Adani Group’s stock performance has been a point of interest for many investors, particularly retail investors, who have increased their holdings in the group’s companies by over 40% since the initial Hindenburg allegations. Major global institutions, including State Street and Blackrock, have also increased their exposure to Adani Group bonds, indicating a level of confidence in the conglomerate’s recovery.
Regulatory Oversight and Political Implications
The ongoing scrutiny of the Adani Group has also drawn attention to the role of the Securities and Exchange Board of India (SEBI) and its chairperson, Madhabi Puri Buch. Recent allegations have surfaced questioning Buch’s impartiality in the ongoing investigations, suggesting that her past investments in offshore funds could influence her oversight of the Adani case. Both Buch and SEBI have denied these allegations, asserting that all necessary disclosures have been made.
Political ramifications are also unfolding as opposition parties have called for Buch’s resignation and a parliamentary inquiry into the Hindenburg report. The situation has become a focal point of debate, raising questions about regulatory integrity and corporate governance in India.
