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7% gain in Adani stocks as US agency DFC deems Hindenburg’s ‘irrelevant’

adani shares up

Signage atop the Adani Group headquarters in Ahmedabad, India, on Wednesday, Feb. 1, 2023. The crisis of confidence plaguing Gautam Adani is deepening, with the stock rout triggered by Hindenburg Research's fraud allegations erasing a third of the market value in his groups companies despite the completion of a key share sale. Photographer: Dhiraj Singh/Bloomberg via Getty Images

On Tuesday, Adani Enterprises‘ shares increased by over 6% to Rs 2681.75. The total market capitalization of the Adani Group’s flagship company has once again surpassed Rs 3 lakh crore.

Tuesday saw a sharp increase in Adani Group stock prices following a report from Bloomberg stating that a US agency had determined that the charges against the Guatam Adani-led conglomerate were unfounded. The news agency’s report, which quoted US officials, caused the Adani stocks to rise.

A senior US official reportedly told Bloomberg that Hindenburg Research’s charges of corporate fraud against Indian billionaire Gautam Adani were unimportant to the US government. This choice was made prior to authorizing a $553 million maximum extension for the container terminal project his conglomerate was planning in Sri Lanka.

During the course of its due diligence investigation into the Adani Group, the International Development Finance Corp (DFC) concentrated on the grave allegations contained in a critical report published by Hindenburg Research, a US-based organization.

According to an agency official, the US agency scrutinized the Hindenburg Research report, which had erased nearly $100 billion from the Adani Group’s market capitalization in January 2023. During the day, the Adani Group’s total market capitalization exceeded Rs 12.5 lakh crore due to the increase in its stocks.

Tuesday’s share price of Adani Enterprises Ltd. increased by over 6% to Rs 2681.75 after the announcement. The total market capitalization of the Adani Group’s flagship company has once again surpassed Rs 3 lakh crore. The stock has increased by roughly 160% since its 52-week lows.

At Rs 924.80 on Monday, Adani Ports and Special Economic Zone Ltd. saw a more than 5% increase, setting new 52-week highs. Early in the session, the Nifty50 component had a total market capitalization of over Rs 2 lakh crore. When compared to its 52-week lows, the stock has increased by 135%.

 

Adani Green Energy Ltd saw a rise in market capitalization of over Rs 1.9 lakh crore for the day, with a roughly 7% increase to Rs 1,198. In the early going, Adani Total Gas shares increased by roughly 5% to Rs 764.90, with a valuation close to Rs 85,000 crore overall.

With a combined market valuation of nearly Rs 1.05 lakh crore and Rs 1.85 lakh crore, respectively, Adani Energy Solutions Ltd and Adani Power Ltd increased 4% to Rs 938.10 and Rs 484.05, respectively. In the early trading on Tuesday, Adani Wilmar gained over 3% to Rs 357, giving it a market capitalization of Rs 47,500 crore.

Ambuja Cements, one of the purchased companies, increased by more than 5% to Rs 499.95, while another cement manufacturer from the Adani group saw a 3% increase to Rs 2088.50 early in the trading day. These companies had a combined market capitalization of Rs 1.4 lakh crore.

 

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