Adani Group’s port unit recovers all stock losses suffered after Hindenburg expose: Report

Months after the Hindenburg expose that left deep financial wounds, Adani Group is steadily recovering, according to a Bloomberg report. On Monday, Adani Group's port unit became the first of its 10 entities to recoup all losses triggered after the release of the damning report.

In the early trading session on Tuesday, all 10 Adani stocks traded in green. Adani Ports and Special Economic Zone Ltd recorded a 7.7 surge while flagship AdaniEnterprises Ltd. gained almost 19 per cent.

The port unit houses the Adani Group's most lucrative assets and is regarded as the crown jewel of the company. According to data compiled by Bloomberg, every analyst covering the stock has given a buy rating to it. Cumulatively, the 10 Adani stocks have raked in $22 billion since Thursday's trading session last week, clearing the deficit to $105 billion from the $153 billion fallout in the aftermath of the report.

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The stocks have managed to change the tide after India's market regulatorSecurities and Exchange Board of India (SEBI) submitted a report to the court panel, according to which there was“no evident pattern of manipulation” in the steep stock-price rise in Adani’s companies.

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SC grants extension to SEBI

Additionally, the Supreme Court (SC) has granted the market regulator time till August 14 to submit its final report. SEBI had moved the SC last month demanding a six-month extension to probe the case.

The regulator arguedthat the complexity of the case meant it would take 15 months to complete the investigation. According to SEBI, there are as many as eight possible violations that requiremore time to complete the probe.

"Pass an order extending the time to conclude the investigation as directed by this Court by the common order dated March 2 by a period of 6 months or such other period as this court may deem fit and necessary in the facts and circumstances of the present case," read the plea filed by SEBI.

ALSO READ | Adani-Hindenburg: SC grants three-month extension to SEBI to complete probe

Previously, media reports claimed that the multi-billion dollar company had tapered its revenue growth to 15 per cent to 20 per cent for the next financial year, down from the earlier target of 40 per cent.

However, the recent gains might prompt the company board to recalibrate its plans.

The Hindenburg reportaccused the Adani group of stock manipulation and using tax havens whilst having unsustainable debt.In the brutal fallout of Hindenburg's report, investors dumped Adani shares while the company was forced to abandon a $2.5 billion share sale.

(With inputs from agencies)

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