Indian billionaire Gautam Adani attends the 51st Gems and Jewellery Awards in Jaipur, India, November 30, 2024.
Stringer | Reuters
Shares of Adani Group companies rose sharply Monday, led by Adani Power, which surged nearly 20% after its five-for-one stock split took effect.
A company generally carries out a stock split to make its shares more accessible for current and potential investors. The stock split also increases the listed company’s liquidity.
The rally came after India’s market regulator, the Securities and Exchange Board of India (SEBI), cleared Adani Group Friday of some allegations of stock manipulation and accounting fraud made last year by short-seller Hindenburg Research.
SEBI is still looking into more than a dozen allegations against the conglomerate, Reuters reported, citing two sources with direct knowledge of the investigations.
Hindenburg’s January 2023 report accused Adani Group of large-scale fraud and stock manipulation, wiping out more than $100 billion from the conglomerate at the time.
While some of its shares have recovered since, the allegations had been an overhang.
Shares of other companies in the group, such as Adani Total Gas, Adani Green Energy and Adani Ports and SEZ were up 15%, 7% and 1.2% respectively Monday.
The group’s stocks were also up on Friday. After SEBI cleared the group of some allegations in the Hindenburg probe, Bajaj Broking Research said in a note on Friday that it has triggered “renewed investor confidence and strong buying interest across the conglomerate”.
