In a significant development, all ten listed companies of the Adani Group witnessed a surge in their stock prices following the Supreme Court's recent statement discrediting the Hindenburg and OCCRP reports. The court reserved its order on public interest litigations (PILs) related to the Adani Hindenburg issue, emphasizing that the reports by Hindenburg and Organized Crime and Corruption Reporting Project couldn't be treated as credible.
As a result of this, Adani Total Gas and Adani Energy Solutions experienced substantial gains, jumping by up to 14% and 11.9%, respectively, as of 9:30 am. The Supreme Court observed that there is no means of testing the veracity of the Hindenburg report, stating, "We don’t have to treat the Hindenburg report as being a statement of truth."
The US-based research firm Hindenburg had released a report in January, alleging stock manipulation among other concerns, causing a significant decline in the group's market capitalization. Several PILs were filed on the issue, prompting the court to ask the Securities and Exchange Board of India (SEBI) for a report.
The court also addressed the OCCRP report, which claimed that 'opaque' funds based in Mauritius had invested in the company. It highlighted that a statutory regulator like SEBI cannot be asked to consider something published in the media as 'gospel truth.' The bench questioned whether SEBI should be following up with journalists and asking them to disclose underlying material.
This development provides relief to the Adani Group, as both the Supreme Court and SEBI have not found any incriminating evidence against the conglomerate. The court had earlier constituted a six-member expert committee to investigate the matter, and their findings support the group's compliance with existing market regulations.