Adani Group Shares Surge After Stock Split & SEBI Relief
Shares of Adani Group companies rallied strongly on Monday, with Adani Power leading the gains after its five-for-one stock split came into effect.
The company’s stock jumped nearly 20% in early trade, as the lower price per share made it easier for both existing and new investors to buy into the company.
Stock splits don’t change the overall value of a company but often improve liquidity, as more people can trade the shares at a lower price point.
The positive sentiment around Adani stocks was further boosted by a development late last week. India’s market regulator, the Securities and Exchange Board of India (SEBI), cleared the conglomerate of some of the allegations made last year by U.S.-based short-seller Hindenburg Research.
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Hindenburg’s report, published in January 2023, had accused the group of large-scale fraud and stock manipulation, triggering a massive sell-off that wiped out over $100 billion of Adani’s market value at the time.
While several of the claims still remain under regulatory review, Reuters reported SEBI continues to examine more than a dozen allegations — Friday’s partial clearance gave investors a sense of relief. Market experts say that the ruling has helped restore confidence in the group, which has been under a cloud for more than a year.
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The effect was visible across the group’s listed companies on Monday. Adani Total Gas climbed 15%, Adani Green Energy rose 7%, and Adani Ports and SEZ gained 1.2%.
The surge followed a smaller rally on Friday, immediately after SEBI’s announcement. Analysts at Bajaj Broking Research noted in a report that the development has “triggered renewed investor confidence and strong buying interest across the conglomerate.”
