Adani Power’s stock surged more than 7% on Friday after the Securities and Exchange Board of India (SEBI) issued its final order in the long-running Hindenburg Research case. The regulator dismissed allegations that certain transactions within the Adani Group were undisclosed related-party dealings, giving a major boost to investor sentiment.
SEBI Clears Adani Group of Hindenburg Allegations
The case focused on loan transactions carried out between FY2018–19 and FY2022–23 by 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.
Hindenburg had alleged that these companies acted as conduits to circulate funds within the Adani Group. However, after a detailed probe and hearings, SEBI concluded that:
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The transactions did not qualify as related party transactions under the Listing Obligations and Disclosure Requirements (LODR) during the relevant years.
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All loans, including interest, were fully repaid before March 31, 2023.
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No evidence of fund diversion, price manipulation, or investor losses was found.
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The 2021 amendment that broadened the scope of related-party transactions could not be applied retrospectively.
As a result, SEBI dismissed charges under the SEBI Act, PFUTP Regulations, and LODR, effectively clearing Adani Ports, Adani Power, Adani Enterprises, group chairman Gautam Adani, Rajesh Adani, CFO Jugeshinder Singh, and the two private firms.
Morgan Stanley Bullish on Adani Power
Adding to the positive momentum, global brokerage Morgan Stanley initiated coverage on Adani Power with an overweight rating and a target price of ₹818 per share. This represents an upside potential of nearly 29% from the current market price of ₹633.50.
Morgan Stanley highlighted Adani Power as “a good illustration of turnaround in India’s corporate history,” citing:
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Resolution of key regulatory hurdles.
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Multiple value-accretive acquisitions.
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Strong pipeline of projects and new medium-term power purchase agreements (PPAs).
The brokerage expects Adani Power’s generation capacity to expand 2.5 times and EBITDA to grow threefold by FY2033. It also believes that the signing of new coal PPAs will strengthen investor confidence in the company’s earnings outlook.
