Adani Enterprises shares on Friday surged to levels last seen in January 2023, before a damning report by US short-seller Hindenburg Research precipitated a significant sell-off. The stock climbed 2.1% to 3,457.85 rupees, matching its January 24, 2023, closing price, the day before Hindenburg accused the Adani Group of stock manipulation and improper use of tax havens. The group denied these allegations but faced a staggering $150 billion (Rs 12.46 lakh crore) drop in market value as investor confidence waned and regulatory scrutiny intensified.
Following the report, Adani Enterprises’ stock plummeted nearly 70% to a two-year low within just a week. Despite this, the company has now rebounded, partially due to significant investments from Abu Dhabi’s International Holding and US-based GQG Partners, which helped stabilize the stock by reducing the family’s tight shareholding.
The recovery also gained momentum after a court-appointed panel in May reported that India’s market watchdog found no conclusive evidence against the Adani Group, and India's Supreme Court ruled in January that no further investigation was necessary. Recent reports suggesting Adani Enterprises' potential inclusion in the SP BSE Sensex index further bolstered the stock, which rose 8% in the previous session and is poised to record gains in nine out of ten consecutive sessions.
Adani Enterprises is the fourth of the conglomerate's seven companies to return to pre-Hindenburg levels. Adani Ports, Adani Total Gas, and Adani Power have also surpassed their January 2023 values, while Adani Energy Solutions, Adani Wilmar, and Adani Green Energy remain below their pre-report valuations. Adani Enterprises, alongside Adani Ports, is a constituent of India's benchmark Nifty 50 index and was last up 0.5%
