Shares of the Adani Group soared dramatically on September 19, 2025, after India’s securities regulator, the Securities and Exchange Board of India (SEBI), gave the conglomerate a clean chit in major allegations made by US short-seller Hindenburg Research. The decision—dismissing claims of market manipulation and improper related-party transactions—lifted a weight off investor sentiment, triggering a sharp rebound across Adani’s listed companies.
What SEBI Decided
- SEBI dismissed the core allegations made by Hindenburg Research, including charges of concealment of related party transactions, fund routing through intermediary entities (Adicorp Enterprises, Milestone Tradelinks, and Rehvar Infrastructure), and other disclosure violations.
- The regulator noted that under the rules in effect at the time of the transactions, those dealings did not qualify as “related party transactions.” Hence, they were not required to follow the stricter disclosure norms then in force.
- All parties involved—including Gautam Adani, Rajesh Adani, and several group companies—were cleared of wrongdoing in these matters.
Stock Market Reaction
- Adani Group stocks surged up to 13.3% in early trading on the Bombay Stock Exchange (BSE).
- Leaders in the rally included Adani Total Gas, Adani Power, Adani Enterprises, Adani Green Energy, Adani Ports, and Adani Energy Solutions. Among them, Adani Total Gas saw one of the biggest gains, up around ₹80-₹90 per share in intra-day trading, reflecting strong investor demand.
- Other group stocks also benefitted, though their gains were somewhat more modest.
Why This Matters
- Regulatory risk removed (partially): For over two years, the Hindenburg report had cast a shadow over Adani’s valuation and investor trust. SEBI’s clearance on these major allegations removes a key overhang.
- Improved investor confidence: Domestic and institutional investors are likely to re-evaluate exposure to Adani companies. The cleaning up of regulatory risk often leads to re-rating of stock multiples.
- Valuation recovery potential: While many Adani stocks are still trading well below their pre-Hindenburg report highs, the clean chit may kickstart a recovery.
What Remains Unresolved
- SEBI’s orders addressed related-party transaction claims, but other pending regulatory or legal issues (for example minimum public shareholding norms, foreign investment limits, or independent investigations by other bodies) are still under scrutiny.
- Market analysts caution that clean regulatory verdicts must be followed by strong corporate earnings, transparency in operations, and consistent governance to sustain the rally. Moneycontrol
- The stocks still have to regain fully lost ground; for many Adani companies, the decline since the Hindenburg report remains steep.
Investor Takeaways
- For investors already exposed, this may offer relief and possibly an opportunity to hold or cautiously accumulate more.
- For those avoiding Adani stocks due to regulatory concerns, the SEBI ruling may reduce perceived risk and invite renewed interest.
- But it’s essential to track future disclosures, performance, and further regulatory orders to validate whether this is just a temporary rally or a sustained turnaround.
Conclusion
SEBI’s clean chit in the Hindenburg case marks a turning point for the Adani Group. Stocks surged as investors reacted strongly to the regulator’s dismissal of key allegations that had previously damaged valuation and confidence. While challenges remain, this development offers a strong base for recovery. Adani’s path from here will depend on operational performance, further disclosure, and how markets respond in the coming quarters.
