Adani Group’s market capitalization remains approximately 23 percent lower than its previous peak of around Rs 20 lakh crore, achieved before the release of the Hindenburg Research report on January 24, despite a significant rise in shares following the BJP’s victory in three states and Supreme Court observations on the Hindenburg case.
Adani Ports SEZ and Adani Power Ltd have gained 37 percent and 107 percent, respectively, since the Hindenburg report, with no negative impacts. In 2022, these equities saw increases of over 13% and 200%, respectively.
The Hindenburg report caused a setback to the group’s flagship company, Adani Enterprises, which had been planning a big fundraising effort. As a result, the company withdrew its follow-on offer. The stock, which was trading at Rs 3,440 per share, is currently 14% less than what it was on January 23, the day before the report was made public.
Adani Total Gas Ltd. and Adani Energy Solutions Ltd, two other group equities are currently trading 74% and 56%, respectively, below where they were before the release of the Hindenburg report. Adani Green Energy Ltd. and Adani Wilmar Ltd. have now dropped by 18% and 30%, respectively, from their pre-Hindenburg report levels, while ACC has decreased by 8%.
The market capitalization of Adani Group has surged to Rs 14.8 lakh crore, up about Rs 4.7 lakh crore, or 46%, since November. The relief from the Indian Supreme Court and the US government’s rejection of the Hindenburg report, which increased investor confidence, are two factors that have contributed to this jump.
The US International Development Finance Corporation’s $553 million investment in Adani Ports’ Colombo terminal project and Adani Green Energy’s December 5 senior debt facility financing of $1.36 billion are two recent achievements for the Adani Group. Investor sentiment is improved by the latter, which represents the largest project financing under the Construction Financing Framework to date.
Chief Justice DY Chandrachud stressed on November 24 that the Supreme Court would not be taking Hindenburg’s statements at face value and reserved judgment on public interest cases against SEBI over Hindenburg’s allegations. The Adani Group claims the report recycled facts to construct a “selective and manipulative” narrative, manipulating allegations to mislead.
Over the next ten years, Adani Group intends to invest Rs 7 lakh crore in capital projects to grow its infrastructure industry. Six companies—power, ports, airports, and the like—aspire to raise capital through bond markets, with 80 percent coming from international debt issuances and the remaining 10 percent coming from domestic sources. The increase in Adani Group stock values has increased Chairman Gautam Adani’s net worth by more than $10 billion, to over $70 billion, ranking him 16th on the Bloomberg Billionaires Index of the world’s wealthiest people.
