SEBI Clean Chit in Hindenburg Case: Adani Group Valuation Soars Rs 69,000 Crore in Single Session as Stocks Rally Strongly

Mumbai, September 19, 2025 – The Adani Group’s market capitalization surged by an astounding Rs 69,000 crore in a single trading session on Friday, propelled by a resounding clean chit from the Securities and Exchange Board of India (SEBI) in the high-profile Hindenburg Research case. The regulator’s dismissal of allegations of stock manipulation, insider trading, and related-party transaction violations sparked a euphoric rally across Adani’s listed companies, pushing their collective valuation to Rs 13.96 lakh crore and signaling a triumphant rebound from the turmoil unleashed by Hindenburg’s January 2023 report.

The verdict, detailed in two comprehensive orders issued on September 18, 2025, not only cleared Gautam Adani and key group entities but also restored investor confidence, erasing much of the Rs 12 lakh crore market value loss triggered by the short-seller’s claims. The rally, led by flagship firms like Adani Power and Adani Green Energy, underscores a pivotal moment for the conglomerate and India’s financial markets.

SEBI’s Verdict: A Decisive Rebuttal

SEBI’s investigation, spanning over two years, scrutinized transactions from FY 2018-19 to 2022-23 involving Gautam Adani, Rajesh Adani, and companies such as Adani Enterprises Ltd (AEL), Adani Power Ltd, Adani Ports & Special Economic Zone Ltd (APSEZ), and private entities Milestone Tradelinks Pvt Ltd and Rehvar Infrastructure Pvt Ltd. Hindenburg had accused these entities of acting as conduits for undisclosed fund routing, alleging Rs 620 crore was used to manipulate share prices and bypass SEBI’s Listing Obligations and Disclosure Requirements (LODR) regulations.

The regulator’s orders, authored by Whole-Time Member Kamlesh Chandra Varshneya, categorically rejected these claims. “The impugned transactions were genuine business loans, repaid with interest, and do not qualify as related-party transactions under LODR regulations,” the orders stated. SEBI found no evidence of stock manipulation or insider trading, concluding that “allegations in the Show Cause Notice are not established.” No penalties or further actions were imposed, effectively closing the case.

This aligns with a 2023 Supreme Court-appointed expert panel’s findings, which found no prima facie evidence of wrongdoing, and the court’s January 2024 directive for SEBI to conclude its probe independently. Gautam Adani, in a statement on X, celebrated the outcome: “SEBI’s thorough investigation confirms our commitment to transparency. The Hindenburg report was a baseless attack, and those who fueled it owe investors an apology for the losses caused.”

Market Surge: A Rs 69,000 Crore Windfall

The market’s response was immediate and explosive. Adani stocks opened with sharp gains on the BSE and NSE, with trading volumes spiking to 2.8 times their 30-day average. By midday, the group’s market cap had swelled by Rs 52,400 crore, peaking at Rs 69,244 crore by close. Adani Power led with a 12.4% surge to Rs 716.10, adding Rs 18,500 crore, while Adani Green Energy and Adani Enterprises gained 8.4% and 5.1%, respectively.

Here’s a snapshot of the rally:

Source: BSE/NSE data; figures approximate.

The rally outpaced the broader market, with the BSE Sensex gaining just 0.2% to 82,626. Analysts attributed the surge to the “removal of the Hindenburg overhang,” with Morgan Stanley’s initiation of coverage on Adani Power signaling renewed institutional interest.

The Hindenburg Fallout and Recovery

Hindenburg’s 2023 report had accused the Adani Group of orchestrating a massive fraud, alleging stock manipulation via offshore shells and non-compliance with public shareholding norms. The fallout saw a Rs 12 lakh crore market cap wipeout, the cancellation of a Rs 20,000-crore Adani Enterprises FPO, and global scrutiny. Opposition parties, including Congress and AAP, amplified the allegations, questioning SEBI’s impartiality.

The group’s recovery, however, has been remarkable. Strong earnings in ports, renewables, and cement, coupled with strategic debt management, restored much of the lost value by mid-2024. Friday’s rally brings the group’s valuation close to its pre-scandal peak of Rs 19.2 trillion (adjusted for new listings).

Stakeholder Reactions: Jubilation and Dissent

The Adani Group hailed the verdict as a “vindication of our governance standards,” with a spokesperson noting it frees resources for green energy and infrastructure expansion. Senior advocate Mahesh Jethmalani called the orders “robust and evidence-driven,” predicting enhanced investor trust.

On X, sentiments ranged from celebratory (@KarnatakaPulse: “Adani’s Rs 69,000Cr surge proves India’s market resilience!”) to critical (@FinObserver: “SEBI’s clean chit raises questions—too clean, too fast?”). Opposition leaders like Jairam Ramesh reiterated calls for a deeper probe, alleging political influence, while Hindenburg, now defunct, offered no comment.

Broader Implications

SEBI’s ruling strengthens India’s regulatory credibility, potentially attracting foreign institutional investors as the country eyes 6.6% GDP growth in FY26. For Adani, it clears the path for ambitious projects, including a $100 billion UAE trade pact and Rs 1 lakh crore in renewables. However, high debt (Rs 1.8 lakh crore as of Q1 FY26) and upcoming quarterly results remain focal points.

As markets closed, the Adani Group stood not just as a corporate entity but as a symbol of resilience. Whether this rally sustains or faces profit-taking will shape its next chapter, but for now, the clean chit has rewritten the narrative—from scandal to soaring triumph.

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