Adani Stocks Soar: This surge comes as the Supreme Court prepares to hear the Adani-Hindenburg matter following Sebi’s investigation submission
New Delhi,29 August(City Times): Adani Stocks Soar: During the early trading session on Tuesday, the shares of Adani Group exhibited mostly positive movement. This surge comes as the Supreme Court prepares to hear the Adani-Hindenburg matter following Sebi’s investigation submission. The court’s proceedings are scheduled for later today.
Sebi’s Investigation into Allegations
Adani Stocks Soar: In response to allegations made by the US-based short-seller Hindenburg Research in January, the Supreme Court had directed the Securities and Exchange Board of India (Sebi) to conduct an investigation. Hindenburg Research had accused the Adani Group of financial misdeeds, fraudulent transactions, and stock manipulation. The group, led by Gautam Adani, strongly denied these accusations.
Stock Gains of Adani Group Companies
Adani Stocks Soar: Adani Enterprises, the flagship company of the Adani Group, saw its shares rise by around 2%, reaching Rs 2,509.15. This brought the company’s total market capitalization to over Rs 2.85 lakh crore. Similarly, Adani Ports and Special Economic Zone experienced a gain of over 1%, with shares priced at Rs 815.40 apiece, contributing to a total market cap of more than Rs 1.75 lakh crore.
Positive Movement Across Various Companies
Adani Power witnessed a gain of more than 2%, reaching Rs 329.35 per share. Adani Energy Solutions, now known as Adani Transmission, observed a gain of over 1%, reaching Rs 874. Adani Total Gas also experienced an increase of over 1%, with shares priced at Rs 663 during the initial minutes of the trading session.
Other Adani Ventures and Acquisitions
Adani Stocks Soar: Adani Wilmar and Adani Green Energy saw marginal gains in their opening trades. Acquired entities, including Ambuja Cement and ACC, advanced by up to 1%. Additionally, New Delhi Television (NDTV), another acquisition from the media sector, recorded a gain of about 2% early in the session.
Sebi’s Investigation Timeline
Sebi was initially expected to submit its investigation report on the Hindenburg allegations by August 14. However, the capital markets regulator requested a 15-day extension and ultimately submitted its status report on August 25. The detailed contents of Sebi’s report, however, have not been disclosed publicly.
Gautam Adani’s Statement to Shareholders
Adani Stocks Soar: Gautam Adani, addressing shareholders, highlighted the recent release of the expert committee’s report, commissioned by the Supreme Court. Based on this report, Gautam Adani asserted that the expert committee found no instances of regulatory failure by the Adani Group.
Allegations and Response
In January of this year, Hindenburg Research, a US-based short-seller, released a comprehensive research report on the Adani Group. The report, spanning two years, alleged that Adani Enterprises and other group companies engaged in stock manipulation and accounting fraud over several decades.
Here are some of the Controversies face by Adani Group:
Environmental Concerns and Carmichael Coal Mine:
One of the most significant controversies surrounding the Adani Group is its involvement in the development of the Carmichael coal mine in Australia. The project has sparked intense debates and protests from environmental activists and indigenous communities due to concerns about its potential impact on the Great Barrier Reef and contribution to climate change. Critics argue that the mine could exacerbate environmental issues and undermine global efforts to reduce carbon emissions.(Adani Stocks Soar)
Land Acquisition and Local Opposition:
The Adani Group has also faced controversies related to land acquisition for various projects in India. Local communities and activists have raised concerns about displacement, inadequate compensation, and potential disruption of livelihoods due to these projects. This has led to protests and legal challenges in several instances, as affected communities seek to protect their rights and the environment.(Adani Stocks Soar)
Financial Allegations and Regulatory Scrutiny:
The group has encountered controversies related to financial transparency and regulatory compliance. In 2021, a report by a foreign investment research firm raised questions about the transparency of Adani Group’s holdings. This report led to increased scrutiny from regulatory authorities, although the group denied any wrongdoing and emphasized its commitment to adhering to regulations.(Adani Stocks Soar)
Media Ownership and Editorial Independence:
The Adani Group’s foray into media ownership has also attracted attention and controversies. The acquisition of media outlets like New Delhi Television (NDTV) has raised concerns about editorial independence and potential influence on news coverage. Critics worry that such ownership could impact media pluralism and free expression.(Adani Stocks Soar)
Portrayal of Proximity to Political Figures:
The Adani Group has faced allegations of having close ties to political figures, which has raised concerns about potential influence over policy decisions. Critics argue that these alleged connections could lead to preferential treatment or favourable policies for the group, undermining a level playing field for businesses and transparency in governance.(Adani Stocks Soar)
Dispute Over Power Tariffs:
The Adani Group has been embroiled in disputes with state governments over power tariffs. In states like Gujarat and Maharashtra, disagreements have arisen between the group and local governments over electricity pricing, with allegations of overcharging and lack of transparency. These disputes have led to legal battles and public debates on the fairness of power tariffs.
Labour and Human Rights Concerns:
There have been reports of labour and human rights concerns associated with some of the Adani Group’s projects. These concerns include allegations of poor working conditions, low wages, and inadequate labour rights protections for workers employed in the group’s infrastructure and energy projects. Such controversies have drawn attention to the broader issue of workers’ rights and safety within the group’s operations.