Adani Group Stocks Rally Up To 13% After Sebi Gives Clean Chit In Hindenburg Case

Adani Group stocks rallied up to 13 per cent in early trade on September 19 after the market regulator Securities and Exchange Board of India (Sebi) cleared the Group Chairman Gautam Adani, his brother Rajesh Adani, and other group entities of allegations levelled by the US-based short-seller Hindenburg Research.

Adani Total Gas led the rally, jumping 13.31 per cent to hit the day’s high of Rs 687.75 on the NSE. Adani Power also saw heavy buying interest, surging 8.80 per cent to Rs 686.95.

Among other group companies, Adani Enterprises and Adani Green Energy advanced nearly 5 per cent each, hitting Rs 2,519.55 and Rs 1,032.30, respectively. Adani Ports rose 2.80 per cent, while Adani Energy Solutions shares climbed up to 5.70 per cent during the session.

Other Adani Group stocks such as ACC, Ambuja Cements, NDTV and Sanghi Industries also traded higher.

In January 2023, Hindenburg Research alleged that Adani Group entities used intermediary entities, namely Adicorp, Milestone Tradelinks, and Rehvar Infrastructure, to move funds between its group companies to avoid disclosing related-party transactions as required by securities regulations. Publicly listed companies are generally required to seek approval and maintain transparency while executing such transactions.

What Sebi's Order Say

Sebi conducted an investigation into these allegations, and in its two separate final orders, issued on September 18, 2025, it found no evidence of wrongdoing. The regulator said that the transactions involving the intermediary entities did not qualify as related-party transactions under the rules in force at the time, a definition that was later revised.

Sebi also noted that all loans were repaid, the funds were used for their intended purposes, and there was no evidence of fraud or unfair trade practices.

The market watchdog also noted that all loans were repaid, the funds were used for their intended purposes, and there was no fraud or unfair trade practice. As a result, it dropped all proceedings against the Adani Group, clearing Gautam Adani and other individuals and entities of the allegations.

How Did The Fund Transfer Work

As per the the regulator’s order, fund transfers within the Adani Group followed a tightly timed cycle. Adani Ports and its wholly-owned subsidiary, Adani Logistics, lent money to Adicorp Enterprises, a small, unlisted company closely linked to the Adani family. Almost immediately, Adicorp passed the bulk of these funds on to Adani Power, usually on the same day or the next. 

Adani Power later repaid the loans to Adicorp, which in turn returned the money to Adani Ports or Adani Logistics, typically within a day or two. The official purpose of these transactions was intercorporate lending, a common practice for short-term funding in large business groups. Adicorp earned a small interest margin for acting as the intermediary.