Adani Group surpasses ₹10 lakh crore market cap after clearing Hindenburg allegations

Adani Group companies added nearly ₹82,000 crore in market capitalization to cross ₹10-lakh crore for the first time after wild claims made by Hindenburg Research’s short-seller report in January.

All the 10 companies of Adani Group ended the day on a positive note, with the total market capitalization reaching ₹10.18-lakh crores with the Supreme Court appointed panel charged with looking into the Hindenburg claim in its report saying that there There are no systemic risks for the group companies.

A leading investment bank Jefferies has assigned a Buy rating to two of the Adani Group companiesAdani ports And Bring me back the transmission After the Supreme Court-appointed panel nearly produced something “squeaky clean” in investigating the allegation put forward by the controversial Hindenburg Report.

Addressing recent concerns about deleveraging, the report noted that Adani Group completed a full pre-payment of $2.15 billion in margin-backed financing ahead of schedule on March 31.

Further, the Adani Group’s move to prepay the $500 million facility obtained for the acquisition of Ambuja and reduce the promoter’s pledge position helped cancel the debt.

VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said the Supreme Court expert panel in its report emphasized that at this stage, given the explanations given by SEBI, backed up by empirical data, at first glance, this would not be possible for the panel. To conclude that there has been a regulatory failure around the allegation of price gouging.

The high integrity of the committee members must have given investors the confidence to buy the battered shares, and some short-covering would have also contributed to the rally. However, from a valuation perspective, Adani’s shares are not undervalued, he said.

Adani Enterprises, made up of the New Age business, posted the biggest profit by 18 per cent closing at Rs 2,326, while Adani Wilmar and Adani Ports rose by 10 per cent and 6 per cent to Rs 444 and Rs 730.

Ambuja Cement and Adani Power gained five percent each to $424 and ₹248, while Adani Transmission and Adani Total Gas jumped five percent each to ₹825 and ₹721.

Adani Green, ACC and NDTV prices increased by five per cent each to 942 rupees, 1815 rupees and 186 rupees on Monday.

Manish Chowdhury, head of research at Stoxbox, said Adani Group shares rose on optimism after the Supreme Court-appointed panel noted that there was no regulatory failure around the Adani Group-Hindenburg price-gouging case.

Moreover, market reports of the group planning to monetize non-core assets also helped drive the gains. He added that although the positive emotional reaction will continue in the next few trading sessions, only market participants who are highly risky should venture into these stocks due to the increased volatility.