Adani Stocks Gain After Supreme Court Orders Committee To Probe Stock Crash

Adani Group stocks rose for third consecutive day on Thursday after Supreme Court ordered formation of panel to probe the recent stock market rout triggered by the accusations published in the Hindenburg report.
 
The Apex Court ordered formation of a committee which will be led by former Supreme Court judge Justice Abhay Manohar Sapre and former ICICI Bank chairman K V Kamath, Infosys co-founder Nandan Nilekani and former State Bank of India Chairman O P Bhatt, to investigate the recent collapse of the Adani Group stocks, which happened after Hindenburg Research leveled allegations of fraud, stock price manipulation and improper use of tax havens.
 
The Supreme Court has ordered Securities and Exchange Board of India (SEBI) to complete the investigation of the case within couple of months. Additionally, the court has also asked the market regulator to see if the allegations of stock price manipulation were true and if there has been a violation of Section 19 of SEBI rules.

To assuage confidence of investors Adani group had recently organized a three –day road show across multiple cities in Asia and had affirmed investors that it will repay or prepay share-backed loans worth between $690 million and $790 million by the end of this month.

Moreover, the company has refuted the claims of obtaining $3 billion loan from the sovereign wealth firms.

Since the release of the January 24 report, Adani Group’s seven listed companies have some $135 billion in the stock rout caused by the damning Hindenburg report.

On Thursday’s intraday trading session, Adani Enterprises, Adani Group’s flagship company, rose 2.5 per cent to Rs 1,603.

Adani Wilmar, Adani Power, Adani Green Energy, Adani Transmission were locked in their respective upper circuit limit of 5 per cent. Whereas Adani Total Gas rose by 3.34 per cent, ACC advanced by 0.57 per cent, Ambuja Cements rose by 3.55 per cent and NDTV jumped by 4.28 per cent.