Adani Group shares surge up to 20%: Here's why
Adani Group stocks saw strong gains today after the Supreme Court wrapped up hearings on petitions calling for an investigation into the Adani-Hindenburg matter. Adani Enterprises rose 11%, Adani Total Gas surged nearly 20%, and Adani Green Energy climbed 15%. Adani Power reached a 52-week high, growing almost 15% to Rs. 455. Adani Wilmar increased 10%, while Adani Ports went up 7%. Other Adani Group companies like NDTV, Ambuja Cements, and ACC also experienced significant gains.
SEBI's investigation progress
The Securities and Exchange Board of India (SEBI) last Friday told the Supreme Court that it has already resolved 22 of the 24 cases related to the Hindenburg matter. The market regulator hence assured the court that it doesn't require extra time to complete its investigation into the Adani Group. The remaining aspects of the probe hinge on data from foreign regulatory bodies.
Hindenburg Research's accusations
In January, US-based Hindenburg Research published a report accusing the Adani Group of engaging in fraudulent activities to artificially inflate its stock prices. The Group has denied these allegations with a detailed rebuttal. However, stocks associated with the company experienced monumental declines on Dalal Street, grabbing the attention of the apex court.
Q2 FY24 performance of Adani Group companies
Meanwhile, during Q2 FY24, seven out of 10 listed Adani Group companies reported net profit growth. Ambuja Cements, the cement and building material flagship company of the Adani Group, emerged as the top performer among group companies, achieving a remarkable 1,835% jump in its consolidated net profit. The cement company reported a Rs. 987 crore net profit compared to Rs. 51 crore in the corresponding quarter of the previous year.
