The Adani Group, a prominent conglomerate led by Gautam Adani, found itself amid an unfolding legal and financial saga as the Supreme Court of India deferred the hearing of the Adani-Hindenburg case by one week. The scheduled hearing initially planned for a specific date, was rescheduled for October 20, 2023. The case pertains to allegations made by a US-based short seller, Hindenburg Research, which has accused the Adani Group of financial misrepresentation and manipulation. In this high-stakes legal battle, the Supreme Court was expected to consider the investigation report from the Securities and Exchange Board of India (SEBI), which had been probing the claims against the Adani Group.
Amidst this legal uncertainty, Adani Group's stocks faced significant downward pressure during the early trading session. Adani Enterprises, the flagship company within the group, witnessed a notable decline of more than 3 per cent, with its stock price dropping to Rs 2,422.95. The company's total market capitalization also experienced a dip, now hovering just above Rs 2.75 lakh crore. This fall in stock price was a stark contrast to the previous trading session, where Adani Enterprises had settled at Rs 2,605.30.
Adding to the financial complexity, Adani Enterprises successfully secured Rs 700 crore in funding through non-convertible debentures (NCDs). This financial manoeuvre was executed as the Gautam Adani-controlled entity allotted 70,000 secured, unrated, unlisted, redeemable NCDs, each with a face value of Rs 1,00,000, through a private placement.
Another prominent entity within the Adani Group, Adani Ports and Special Economic Zone, also experienced a stock price decline of 2 per cent, with its shares trading at Rs 806.90. The total market capitalization of Adani Ports slipped below the Rs 1.75 lakh crore mark. It's worth noting that Adani Ports had previously disclosed that it received offers totalling about $213 million for its dollar bond buyback; however, it would only accept the $195 million amount that had been previously announced.
The ripple effect of this legal development was seen across various other entities under the Adani Group. Adani Power witnessed a 2 per cent decline in its stock price, trading at Rs 341.50 during the session. Subsidiaries like Adani Total Gas, Adani Energy Solutions, Adani Wilmar, and Adani Green Energy also faced a 1 per cent decline in their respective stock prices. Furthermore, entities that the Adani Group has acquired, such as Ambuja Cement, ACC, and New Delhi Television (NDTV), also experienced a dip in their stock prices.
The legal battle at the Supreme Court revolved around the Adani-Hindenburg case and was expected to address a fresh status report submitted by SEBI, the market regulator. In August, SEBI informed the court that it had completed its investigation into most allegations against the Adani Group, except two, and was awaiting information from five tax havens regarding the actual owners behind certain foreign entities linked to the group.
The legal tussle took a new turn last month when a Public Interest Litigation (PIL) was filed in connection with the Adani-Hindenburg dispute. The PIL accused SEBI of withholding crucial information from the Supreme Court and concealing a letter from the Directorate of Revenue Intelligence (DRI) regarding alleged stock manipulation by Adani Group companies. This latest development in the ongoing saga underscores the complex and contentious nature of the case, leaving both investors and industry observers closely monitoring its progress and implications.
