Hindenburg’s allegations ‘irrelevant’
The surge propels the conglomerate’s market capitalisation to over Rs 14 lakh crore. A Bloomberg report said International Development Finance Corp (DFC) conducted a due diligence investigation before extending the group a $553-million loan
The combined mcap of Adani Group companies surpassed Rs 14 lakh croreShares of Adani Group companies surged up to 17 percent on December 5 morning following a report that a US agency found the accusations made by Hindenburg Research against the Gautam Adani-led power-to-port conglomerate to be irrelevant.
International Development Finance Corp (DFC) conducted a due diligence investigation before extending the conglomerate a $553-million loan for a container terminal in Sri Lanka, a Bloomberg report said.
Moneycontrol couldn’t verify the report independently.
A senior US official affirmed that the US government considered Hindenburg Research’s allegations of corporate fraud against Adani inconsequential.
Following the update, flagship Adani Enterprises Ltd surged more than 10 percent to Rs 2,784.30 on the National Stock Exchange. Its market capitalisation topped Rs 3 lakh crore mark once again. The stock has surged 173 percent from its 52-week low, touched earlier this year following the report that accused the group of stock manipulation and other wrong-doings.
Adani Green Energy led the pack, gaining up to 17 percent, after the company announced that it secured an additional $1.36 billion funding via a senior debt facility.
The funding takes the firm’s total construction financing framework to $3 billion, supported by an international consortium of banks. In the last month, Adani Green Energy stock has surged 42 percent.
Share of Adani Ports and Special Economic Zone Ltd (ASPEZ) surged more than 9 percent to hit a new 52-week high of Rs 966.50 on NSE.
capitalisation of more than Rs 2 lakh crore early. The stock has zoomed 144 percent from its 52-week low of 395.10, touched in February.
Adani Energy Solutions also surged 10 percent to Rs 1,032.30 on NSE. The stock has rallied nearly 30 percent in the last month. Shares of Adani Total Gas gained over 7 percent to hit an intraday high of Rs 806.80 on NSE, with a total valuation of around to Rs 86,600 crore. Adani Power stock rose gained nearly 7 percent each to 499.45 on NSE.
Adani Wilmar also jumped over 5 percent to Rs 365.30. Ambuja Cements gained jumped 5 percent as it completed the acquisition of Sanghi Industries (SIL) at an enterprise value of Rs 5,185 crore. With the acquisition, funded entirely through internal accruals, Ambuja Cement now holds a controlling stake of 54.51 percent in SIL.
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Among other Adani Group companies, shares of ACC jumped 6 percent and NDTV 7 percent.
The US government concluded that short-seller Hindenburg Research’s allegations of corporate fraud against Indian billionaire Gautam Adani weren’t relevant before extending his conglomerate as much as $553 million for a container terminal in Sri Lanka, a senior US official said.
Allegations in a scathing report by US-based Hindenburg Research, which erased around $100 billion from the Adani Group’s market value earlier this year, were front and center as the International Development Finance Corp., or DFC, conducted a due diligence investigation of the conglomerate, an official from the US agency told Bloomberg.
The DFC was satisfied that the accusations in the short-seller’s report, which said Adani was pulling off “the largest con in corporate history,” weren’t applicable to Adani Ports & Special Economic Zone Ltd., the subsidiary spearheading the Sri Lankan project, the DFC official said, declining to be named to detail the negotiations.
The combined mcap of Adani Group companies surpassed Rs 14 lakh crore. The conglomerate’s wealth has surged over Rs 1.83 lakh crore in the last week.
