Adani Enterprises claws back to pre-Hindenburg level

Short-selling firm Hindenburg Research had accused Adani Group of manipulating share prices and serious allegations like money laundering were also made. After this, there was a heavy sell-off in Adani Group companies’ shares. It wiped out investors’ billions of dollars of wealth.

Adani Enterprises’ share on Friday jumped by 2.1 percent to reach an intraday high of ₹3,457.85 on the National Stock Exchange. Its closing price on January 24, 2023, was higher than ₹3,442, just a day before the Hindenburg report. On February 27, 2023, the share had seen a low of ₹1,194.20. Since then, the scrip has almost tripled.

However, the shares closed at ₹3,381 on Friday with a slight decline. During the last 11 trading sessions, the share saw a surge of more than 22 percent.

It took almost one and a half years for Adani Enterprises’ share to regain its pre-Hindenburg report level. According to a report, shares of Adani Ports, Adani Total Gas, and Adani Power have already reached pre-Hindenburg report levels. However, Adani Group’s Adani Energy Solutions (formerly Adani Transmission) and Adani Wilmar are yet to return to respective previous levels.

Adani Group’s market capitalization, or M-Cap, reached $207.6 billion, or ₹17.23 trillion (₹17,23,000 crore) on Thursday. But it is nearly $22 billion lower compared to before the Hindenburg report was out.

After the Hindenburg report, investment firm GQG Partners, led by Rajiv Jain, came forward to support the Adani Group. According to another report, GQG Partners had invested ₹385 billion or ₹38,500 crore in shares of six Adani Group companies from March to October last year. The value of this investment increased to ₹964.31 billion or ₹96,431 crore on Friday. During the past year, its investment has surged by approximately 172 percent.