Adani Group Shares Rally After SEBI Clean Chit on Hindenburg Allegations

On Friday, the Adani Enterprises share price jumped 5.1%, while the Adani Power share price rose 8.8%, and other Adani group company shares experienced a positive price movement on the NSE. This marks a major regulatory turning point for Adani Group companies, following SEBI's recent dismissal of Hindenburg Research's market manipulation allegations. This verdict not only closes a volatile chapter in India’s corporate governance landscape but also provides much-needed clarity on the legality of past Adani transactions, helping restore investor confidence after almost three years of market uncertainty.

Background: The Hindenburg Story

In January 2023, US-based short seller Hindenburg Research published a report accusing the Adani Group of stock manipulation, improper use of offshore tax havens, and inflated valuations. Specifically, Hindenburg claimed the group routed large sums through three intermediary firms, Adicorp Enterprises, Milestone Tradelinks, and Rehvar Infrastructure to conceal related-party transactions and artificially inflate Adani Enterprises, Adani Power, and other stocks, quoted as per sources. The fallout was swift and severe: Adani stocks tanked, erasing more than $100 billion in market value at their lowest point, and the Supreme Court directed the Securities and Exchange Board of India (SEBI) to probe these allegations.

SEBI’s Investigation

As per sources, the SEBI investigation was spread over from FY13 to FY21 financials and scrutinized the group’s commercial dealings, fund transfers, and disclosure practices. The regulator examined whether the contested transactions were genuine business activities or undisclosed related-party dealings in breach of India’s listing and disclosure norms.

Public Perception

The verdict carries tremendous legal weight, with SEBI’s authority regarded as the gold standard in matters of corporate disclosure and governance. Some experts have labelled this as “the best quality clean chit that any corporation can hope for,” given the depth and length of the probe and previous Supreme Court scrutiny that mentioned similar findings. The regulator’s detailed orders will be put to rest on years of allegations, and the lifting of regulatory uncertainty over the entire Adani group will be positive.

Impact on Adani Group Stocks and Investor Sentiment

The immediate market reaction has been positive, with Adani Group companies following the verdict, resulting in gains among group entities. This marks a sharp reversal from the post-Hindenburg crash, and signals renewed investor confidence in the conglomerate’s governance standards and future prospects. Analysts expect the recalibration to help Adani regain access to global funding, revive institutional interest, and support a stable trajectory for its ambitious infrastructure and energy investments.

Why the SEBI Verdict Is Crucial?

For Adani Enterprises and the broader Adani portfolio, SEBI’s clean chit is more than just regulatory relief as it is resembles a restoration of trust. The Adani Group has consistently denied the Hindenburg claims and maintained transparency throughout the probe. The verdict not only reaffirms the group’s compliance under the rule of law but also demonstrates the efficacy of India’s regulatory framework in addressing high-stakes corporate disputes. With this cloud lifted, Adani can focus on growth, project execution, and capital market opportunities without lingering doubts about governance and legality.