Adani Stocks Surge as SEBI Dismisses Hindenburg Allegations
Background: The Hindenburg Report
In January 2023, Hindenburg Research, a U.S.-based short-seller, published a report accusing the Adani Group of stock price manipulation and improper related-party transactions. These allegations led to a significant decline in the market value of Adani Group companies and triggered regulatory scrutiny.
SEBI's Investigation and Findings
The Securities and Exchange Board of India (SEBI) conducted an extensive investigation into the allegations over a period of 32 months. On September 18, 2025, SEBI concluded that the allegations were unsubstantiated. The regulator found no evidence of insider trading, market manipulation, or violations of public shareholding norms by the Adani Group. Consequently, SEBI dismissed the proceedings against the group and its chairman, Gautam Adani.
Market Reaction: A Significant Rally
Following SEBI's clean chit, Adani Group stocks experienced a substantial rally. On September 19, 2025, the combined market capitalization of Adani Group companies surged by approximately ₹69,000 crore in a single trading session. Individual stocks saw significant gains, with Adani Total Gas leading the rally with a 10% increase, followed by Adani Power at 9.6%, and Adani Enterprises at 4.4%.
Investor Confidence Restored
The dismissal of the allegations by SEBI has restored investor confidence in the Adani Group. The market's positive response reflects a renewed belief in the group's business practices and governance. However, SEBI continues to review other allegations against the group, including claims related to shareholder classifications and offshore fund investments.
Conclusion
SEBI's decision marks a pivotal moment for the Adani Group, potentially ending one of India's most high-profile corporate controversies. While the group's stocks have rebounded, ongoing regulatory reviews suggest that the final chapter in this saga has yet to be written.
