Adani Green Energy shares jumped more than 4% on Friday after the Securities and Exchange Board of India (SEBI) issued its final order in the long-running case linked to Hindenburg Research’s allegations against the Adani Group.
The matter revolved around loan transactions involving Adani Ports and SEZ Ltd., Adani Power Ltd., and Adani Enterprises Ltd. through two private entities — Milestone Tradelinks Pvt. Ltd. and Rehvar Infrastructure Pvt. Ltd. — between FY2018–19 and FY2022–23. Hindenburg had claimed these firms acted as conduits to move funds within the group.
SEBI’s Key Findings
After a detailed investigation, SEBI concluded that the transactions did not fall under the definition of related party transactions (RPTs) as per the Listing Obligations and Disclosure Requirements (LODR) regulations during the relevant period.
The regulator highlighted that:
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All loans and interest were fully repaid before March 31, 2023.
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No evidence of fund diversion or investor losses was found.
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The 2021 amendment expanding the RPT definition was prospective (from April 2022) and could not be applied retrospectively.
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No proof of fraudulent trade practices, price manipulation, or investor inducement emerged.
With this, SEBI effectively cleared Adani Ports, Adani Power, Adani Enterprises, group chairman Gautam Adani, promoter Rajesh Adani, CFO Jugeshinder Singh, and the two private entities of any violations under the SEBI Act, PFUTP, or LODR regulations.
Jefferies’ Bullish Outlook on Adani Green
Adding to the positive momentum, Jefferies reiterated its buy rating on Adani Green Energy, setting a target price of ₹1,300 per share — nearly 32.6% higher than the current market price of ₹980.60.
The brokerage expressed confidence in Adani Green’s long-term expansion plan to grow capacity from 14 GW in FY25 to 50 GW by 2030 — a 3.5x increase.
Key highlights from Jefferies’ note include:
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Capacity additions: 4.5 GW expected in FY26E and 6.3 GW in FY27E. The company’s reiterated guidance of 5 GW in FY26 provides upside potential.
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Financial strength: Improving net debt-to-EBITDA metrics are supporting the balance sheet.
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Attractive valuations: The stock is still trading at a 63% discount to its January 2023 peak one-year forward EV/EBITDA multiple, leaving scope for significant re-rating.
