Adani Enterprises stock recovers from $30bn losses following Hindenburg report
Adani Enterprises Ltd, the principal company of Adani Group, has successfully recouped over $30 billion in losses. These losses were instigated by a report from US-based short-seller Hindenburg Research in early 2023. The report accused the ports-to-power conglomerate of corporate misconduct and share price manipulation, allegations that the group has consistently refuted. Now, the group is less than $30 billion away from returning to its market value prior to Hindenburg's report.
Stock tripled since February 2023
The stock of Adani Enterprises witnessed a rise of 1.7% to ₹3,445.05 on Friday, nearly tripling since its lowest point in February 2023. This surge comes amid predictions by some analysts that the company's stock will be included in the S&P BSE Sensex Index in June. Such an inclusion could potentially attract passive flows to the company's stock.
Expansion and market performance
Other companies within the Adani Group are engaging with global investors to raise fresh debt, as they continue to expand their cement and copper businesses. At least five out of 10 listed Adani Group shares are trading above levels seen before the Hindenburg report was released. "There are a handful of groups in India that can undertake big projects and Adani Group has taken the leadership position," commented Abhay Agarwal, a fund manager with Mumbai-based Piper Serica Advisors Pvt Ltd.
Adani Group's best performers and laggards
Shares of Adani Ports and Special Economic Zone (SEZ) and Adani Power have been among the top performers this year, adding more than 35% each. However, New Delhi Television Ltd., a television broadcaster within the group, has been lagging behind, losing 5.5%.
Recovery journey and future prospects
In January 2023, following Hindenburg's report, Adani Enterprises scrapped a $2.4 billion equity offering which was set to be India's largest follow-on share sale at the time. The first stage of recovery for Adani stocks began in March 2023 when emerging-market investor Rajiv Jain's GQG Partners purchased shares worth almost $2 billion in four of the group firms from an Adani family trust. The group also attracted investments from Qatar Investment Authority and UAE-based International Holding Co.
