Shares of billionaire Gautam Adani-led group companies have recovered all losses triggered by a critical short-seller report published in 2023, as the conglomerate continues to navigate regulatory scrutiny and legal challenges, Bloomberg has reported.
The group's nine listed companies have collectively regained around USD 150 billion in market value that had been wiped out following allegations made by US-based Hindenburg Research, which accused the ports-to-power conglomerate of widespread corporate misconduct.
All nine Adani group stocks rose on Wednesday, led by a 13% jump in shares of Adani Total Gas Ltd. Adani Power Ltd. extended its record rally, taking its gains for the year to nearly 75%, while flagship company Adani Enterprises Ltd. also registered gains during the session.
The combined market value of the group’s listed entities crossed Rs 19 trillion (USD 199 billion) on Wednesday. However, in dollar terms, the group's valuation still remains nearly USD 20 billion below the level recorded before the release of the Hindenburg report.
The recovery marks a significant turnaround for the Adani Group, which has spent nearly three years dealing with the fallout from the allegations and the sharp selloff that followed. Gautam Adani and the group have repeatedly denied the accusations, while regulatory investigations in India have not substantiated Hindenburg’s claims.
The rebound in the group's shares has accelerated following favourable developments in the United States, including the Justice Department's reported move to drop criminal charges against Adani. The recovery has also been supported by increasing exposure from global investors, including Capital Group.
Adani Power, now the group's most valuable company with a market capitalisation exceeding USD 50 billion, has led the rally as investors increasingly view Adani companies as leveraged plays on India's infrastructure growth, manufacturing expansion, and energy transition initiatives.
