Adani Enterprises Stock Recovers $30 Billion Following Hindenburg Report

New Delhi: Shares of Adani Enterprises Ltd, the flagship company of Indian billionaire Gautam Adani’s group have erased from the losses caused by a critical short-seller report in early 2023. This recovery came after the conglomerate reduced its debt and sacred major projects.

The stock has recovered from losses of over 30 billion dollars that followed allegations of widespread corporate misconduct and share-price manipulation by US-based Hindenburg Research in January 2023. However, the Adani group has consistently denied these accusations. (Also Read: Wipro's Ex-CEO Thierry Delaporte Becomes Highest Paid Indian IT CEO For FY24)

“There are a handful of groups in India that can undertake big projects and Adani Group has taken the leadership position,” said Abhay Agarwal, a fund manager with Mumbai-based Piper Serica Advisors Pvt, as reported by Bloomberg. He further added, “Investors are looking at Adani group as a policy play and since there is a clear direction on the country’s policy, we are seeing recovery.” (Also Read: Sensex Hits New All-Time High; Nifty Breaches 23,000-Mark For First Time)

Adani Enterprises stock rose 1.7 percent to 3,445.05 today, May 24. It has nearly tripled  since its drop in February 2023. The rise comes as analysts anticipate Adani Enterprises’ stock will be included in the benchmark S&P BSE sensex index in June, potentially attracting more investment.

Further, other Adani companies are working with global investors to raise new debt as the group continues to expand its cement and copper businesses. At least five of the 10 listed Adani group stocks are now trading higher than they were before the Hindenburg report besides Adani Enterprises.