Adani Group Market Cap Now Back To Pre-Hindenburg Level

The Adani Group has regained its total market capitalisation that existed before a US-based short seller-triggered event in January last year. The m-cap of 10 listed group companies increased by almost Rs 2.16 lakh crore to go past Rs 19.7 lakh crore in early trade on Monday after nearly 500 days.

All Adani Group companies advanced on opening bell, with flagship Adani Enterprises Ltd. gaining over 9%, while Adani Ports and Special Economic Zone Ltd. rose 10% to hit a life high.

Adani Power Ltd. and Adani Total Gas Ltd. opened 15% higher, Adani Wilmar Ltd. by 7% and Adani Green Energy Ltd. by 10%.

On Friday, the Bloomberg Billionaire Index reported that Gautam Adani's net worth stood at $111.1 billion. This ranking positioned Adani as the richest individual in India and Asia, surpassing Mukesh Ambani. Additionally, Adani became the world's 11th richest person, according to the same index.

The Bloomberg Billionaire Index updates its data at the close of each trading day in New York. Consequently, the changes in Adani's wealth on Monday were not immediately reflected in the index.

"The execution (capacity) of the Adani Group has been mind boggling," said Nirav Sheth, chief executive officer - institutional equities at Emkay Global Financial Services Ltd. "That (infrastructure sector) is where the entire thrust is going to be and where there is capacity to do large-scale construction."

Sheth contrasted the Gautam Adani-led conglomerate's investment approach for the long term with other groups, that have largely gone for consumer-facing businesses.

Earlier this year, the Supreme Court gave a clean chit to the Adani Group and dismissed all allegations while reposing confidence in SEBI's powers. The top court ruled that petitioners could not provide enough material to transfer the Adani-Hindenburg probe to a special investigation team. The court disposed of the petitions, finding that the "threshold for a transfer of investigation" had not been made out.

After Hindenburg's report and Adani Group's counter in January last year, four public interest petitions were filed before the apex court. The PILs had broadly asked for directions regarding allegations against the Adani Group.

On March 2, the Supreme Court directed SEBI to look into any disclosure breaches and possible price manipulation of Adani stock in violation of existing laws. The regulator was directed to submit its report within two months. But in April, SEBI made submissions before the apex court asking for six months to conclude its investigation. The court, however, granted time only till Aug. 14.

Since the markets regulator required more time to complete the investigation, it filed an application before the court on Aug. 14, asking for 15 additional days. As per SEBI's last status report, which was submitted to the court on Aug. 25, the regulator had wrapped up its investigation in 22 of the 24 matters.

The Supreme Court had also set up an independent committee back in March. This committee was headed by Justice (retired) Abhay Manohar Sapre. Other members of the committee included OP Bhat, KV Kamath, Nandan Nilekani, Somashekhar Sundaresan, and retired Justice JP Devadhar.

The committee submitted its report before the top court in May, concluding that a regulatory failure by SEBI could not be ascertained.

During the last hearing in November, the top court had expressed confidence in the regulator and dismissed allegations doubting SEBI's role in the investigation.

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