Shares of Adani Group companies including Adani Enterprises, Adani Power, Adani Green Energy, Adani Total Gas surged up to 10 percent on September 19 after regulatory Securities and Exchange Board of India (SEBI) gave the conglomerate and its founder, Gautam Adani, a clean chit in the stock manipulation case triggered by US-based short seller Hindenburg Research.

What Sebi said?

In two detailed orders, SEBI said its investigation found no evidence that the group routed funds through related parties to inflate share prices of its listed entities. Allegations of insider trading, market manipulation, and violations of public shareholding norms were deemed unsubstantiated after months of inquiry.

Hindenburg Research, which has since shut down operations, released a report in January 2023 alleging that Adani Group used three firms: Adicorp Enterprises Pvt Ltd, Milestone Tradelinks Pvt Ltd, and Rehvar Infrastructure Pvt Ltd as conduits to channel funds into Adani Enterprises and Adani Power. The report had sparked a massive selloff, erasing more than $100 billion in market value at its lowest point.

However, SEBI board member Kamlesh C Varshney clarified in the orders that transactions involving these three firms did not qualify as related-party dealings under the rules at that time, and hence did not breach disclosure requirements.

“After a thorough investigation, SEBI has concluded there is no basis to hold the Adani entities or their executives liable or to impose penalties,” the regulator said.

The ruling provides significant relief to the ports-to-power conglomerate, which had been under the scanner for months amid regulatory scrutiny and market speculation. A Supreme Court-appointed expert committee had earlier arrived at a similar conclusion, noting no prima facie evidence of wrongdoing.

Morgan Stanley initiates "overweight" call on Adani Power

Global brokerage firm Morgan Stanley initiated "overweight" rating on Adani Power and shared target price of Rs 818, implying upside potential of 30 percent. Analysts said that the company is a strong example of a corporate turnaround in India. Most of the regulatory issues have been resolved and value accretive acquisitions have been completed.

The brokerage firm believes that the company is set to deliver strong earnings growth from timely projects and new PPAs. Capacity and EBITDA forecast to rise 2.5x and 3x by FY33.

Despite the overhang, Adani Group shares have delivered a mixed performance in 2025. So far this year, shares of Adani Enterprises, Adani Green Energy, and Adani Total Gas have declined by as much as 19 percent, while Adani Ports and Adani Power have gained up to 19 percent.