Investors who showed unshakable faith in India’s Adani Group right through its Hindenberg crisis are reaping rewards for their patience.
The group’s share rallied up to 5% today after the coal-to-cement conglomerate announced full pre-payment of share back financing worth $2.15 billion. All of Adani’s 10 listed entities traded in the green today. Adani Transmission, Adani Total Gas, Adani Green Energy, and Adani Power even hit the 5% upper circuit.
The rally comes weeks after US-based short seller Hindenburg Research shocked Adani investors with a damning report, forcing its stocks to tumble between 30% and 80%. The Jan. 24 report accused the Adani group of “pulling the biggest con in the corporate history.” The Indian company denied it all.
The recent volatility in Adani stocks has put two of its listed companies’ shares under the scanner. Adani Transmission and Adani Total Gas have been put under the second stage of the long-term additional surveillance measure (ASM) framework, as per India’s leading bourses National Stock Exchange and Bombay Stock Exchange.
This is done to safeguard investors from speculative or malicious trade amid volatility.
Meanwhile, credit agencies like CARE and India Ratings have lowered their outlook on some Adani Group-backed companies from “stable” to “negative” over the past week.