The shares of 9 out of the 10 Adani Group firms experienced a major bounce back early this week. This happened just a day after the Adani Group’s stocks experienced a sharp decline. This rise in share values highlights the Adani Group’s strong resilience, even during difficult times. It also sheds light on the reliability of the global conglomerate and its aim towards achieving better. It will help the Adani Group rise above the controversies that followed the Adani SEBI probe.
The Rise in Stock Values:
The stock price of Adani Energy Solutions jumped 6%. Adani Total Gas’s shares increased by 4%. The shares of NDTV went up by 2.56%. Adani Green Energy’s shares also increased 2.5% on the BSE. The shares of Adani Wilmar increased by 2.15%, while the shares of ACC, Adani Power, and Adani Ports increased by 1.93%, 1.74%, and 1%, respectively. Ambuja Cement shares also witnessed an increase of 0.43%. The shares of a few of the Adani Group of Companies have been consistently on the rise. However, for some companies, the share values were not consistent. A sudden downfall was witnessed in the shares of some of the companies in recent times. However, the Adani Group was able to bounce back really quickly. It once again got back to its original situation of prosperity. It was also able to win back the trust of the customers with its extraordinary performance in the share market.
Hindenburg’s Allegations on SEBI:
On the intraday trade, the Adani Group’s firms faced a severe blow after Hindenburg Research came up with allegations that SEBI chairperson Madhavi Puri Buch and her husband had undisclosed investments in offshore funds in Mauritius and Bermuda. The same entities were allegedly used by Vinod Adani to round-trip firms and inflate stock prices. Hindenburg Research reported that a conflict of interest exists between SEBI and the Adani Group, which might have brought about biases in SEBI’s investigations against the Adani Group. This again gave birth to Adani SEBI controversies, which caused Adani’s share prices to come down in the stock market.
Buch and her husband have issued a statement, calling Hindenburg’s latest allegation an attack on the credibility of the SEBI. Buch and her husband made a joint statement that the investments were made in 2014. This was well before she was appointed a full-time member of SEBI in 2017. The Adani Group also made it clear that the acquisitions made by Hindenburg are completely fake and are once again aimed at causing disruption to the Adani Group’s business.
The Previous Allegations:
Hindenburg Research had earlier targeted the Adani Group on account of stock manipulation and account fraud. However, its allegations held no ground. The Hindenburg report was published in January 2023 after which the Adani Group’s firms experienced a lot of hindrances. Various projects that the Adani Group of Companies were operating had to be brought to a halt. A lot of investors began to lose trust in the Adani Group’s business. However, the conglomerate did not lose hope. Instead, it continued to carry out its business operations. The Adani SEBI probe continued for over a year. However, no such strong proofs were found against the Adani Group. This caused the Supreme Court to give its verdict in favour of the Adani Group. The court then gave orders to drop charges against the Adani Group.
The SEBI was also ordered to wrap up the investigation soon so that the conglomerate could once again operate with full force. The investors once again started making huge investments in the various proceedings of the global conglomerate. The Adani Group was also able to become a part of a lot of new mergers and acquisitions, which added to its credibility. These acquisitions also helped the Adani Group increase its revenue generation. It was also able to recover from the losses it suffered during the Hindenburg report.
Conclusion:
Since its foundation, the Adani Group has come across a lot of allegations, which have caused its business to suffer a severe blow. However, the conglomerate was back to business in no time. In the upcoming years, the conglomerate will continue to fight for its rights and build itself an extraordinary place in the global business scenario.
