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- Published: December 5, 2023 13:32
New Delhi: Stock of Adani Group’s flagship companies along with its accessory businesses saw a major jump of upto 17%, following reports of US government giving it a ‘clean chit’ in the Hindenburg saga.
Report said that a US agency has found accusations made against the Adani Group, by leading America-based short-seller Hindenburg Research, as ‘not relevant’.
According to a Bloomberg report, the International Development Finance Corp conducted a probe into damning allegations and after finding the charges ‘inconsequential & irrelevant’, it extended a $443 million loan to the conglomerate for building a container terminal in Sri Lanka.
Notably, soon after the Hindenburg report on India’s power-to-port conglomerate, the latter’s stocks went into a downward spiral, significantly eroding its own & investor’s wealth.
Adani Group shares turn green
After the US report put aside Hindenburg’s allegations against the group, the stocks of Gautam Adani-led group saw spike in almost all segments including its ports & energy segments to its smaller businesses.
According to Moneycontrol.com, Adani Enterprises, company’s flagship brand witnesses 10% jump in stocks at the NSE. This has pushed its market capitalization beyond Rs 3 lakh crore again. Notably, the company had hit its 52-week low in January this year, after Hindenburg’s damning charges.
Adani Green Energy also soared upto 17%, though this was backed by additional $ 1.36 billion funding into the group.
Adani Ports surged over 9 % to reach 52-week high while Adani Energy Solutions also rose 10% on the charts.
Adani Gas stocks saw spike of about 7% while Adani Power also gained 7% on the NSE.
Overall, the combined mcap of Adani Group companies has now crossed past Rs 14 lakh crore, reported the leading business portal.
What the US said on Hindenburg’s allegations
The Bloomberg report said that the US government recently found that Hindenburg’s allegations of corporate fraud against billionaire and Adani Group Chairman Gautam Adani weren’t relevant. And, therefore, it wouldn’t impact the US decision to grant up to $ 553 million.
In November, the US International Development Finance Corporation announced a $553 million investment in the Adani Ports-led container terminal project in Colombo.
Notably, the Hindenburg Research’s scathing report had erased around $100 billion from Adani Group’s market value earlier in the year.