Adani Ports recovers post-Hindenburg losses after panel gives all-clear
Investing.com-- The Adani Group's port division became the first among the conglomerate's 10 entities to fully recover from share losses caused by short seller Hindenburg Research's report in late-January.
All 10 Adani stocks advanced on Tuesday, with shares of Adani Ports and Special Economic Zone Ltd (NS:APSE) skyrocketing by up to 7.7%. The group's flagship company, Adani Enterprises Ltd (NS:ADEL)., also experienced a significant boost of nearly 19% following a similar rise on Monday.
This rally began last Friday after an Indian court panel reported no clear evidence of stock-price manipulation, as raised by U.S. short-seller Hindenburg in a damning.
Since Thursday’s close, the combined market value of 10 Adani stocks has surged approximately $22 billion. The current loss in value since Hindenburg’s report stands at around $105 billion, down from its peak at $153 billion.
The ports business is considered one of billionaire Gautam Adani’s most valuable assets, and is also the most closely monitored stock among sell-side researchers.
In addition, two U.S.-currency bonds for Adani Ports, maturing in 2027, rose by approximately 0.2 cents on the dollar this Tuesday. However, they are still trading at a level that is 6% lower than before Hindenburg's report.
Last week, a court panel released a 173-page document stating that based on data from the Securities and Exchange Board of India (SEBI), there was no evident pattern of manipulation in Adani’s companies' stock prices attributable to any single entity or group of connected entities.
This refered to Hindenburg's central allegation which claimed offshore shell companies tied to the Adani family were driving up share prices. Nevertheless, investigations continue and SEBI has been given until August 14th by the court to conclude its inquiry.
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Adani Ports recovers post-Hindenburg losses after panel gives all-clear
