Adani Power Leads the Surge with Stock Split Impact
KKN Business & Economy Desk | Shares of Adani Group companies recorded a sharp rally on Monday, with Adani Power leading the surge after its five-for-one stock split came into effect. The stock soared nearly twenty per cent in intraday trading, providing a strong boost to investor sentiment across the conglomerate. A stock split typically makes shares more affordable and liquid while allowing existing and new investors easier access to the company. By reducing the per-share price, the split increases participation and raises overall liquidity in the stock exchange.
The timing of this rally was crucial as it coincided with regulatory developments involving the conglomerate. Optimism in the market was fueled by a favourable regulatory outcome from the Securities and Exchange Board of India (SEBI), which cleared Adani Group of some allegations related to stock manipulation and accounting irregularities. This has given investors fresh confidence in the group, especially after months of scrutiny stemming from allegations raised last year.
SEBI Clears Some Allegations Amid Ongoing Probe
Last week, the Securities and Exchange Board of India, the country’s financial market regulator, issued an order clearing Adani Group of some of the charges that were levelled in January 2023 by U.S.-based short-seller Hindenburg Research. The allegations had created a storm in the equity markets, wiping out billions of dollars in valuation for the group.
According to the details available, SEBI continues to probe more than a dozen other allegations against the conglomerate. Reports from Reuters suggest that the investigations are still ongoing and will take more time before conclusions are drawn. Two officials familiar with the matter indicated that not all aspects of the Hindenburg claims have been dismissed.
The partial clearance, however, has significantly improved market sentiment. It has given investors reassurance that not all accusations hold ground and that regulatory backing could help stabilise the group’s market standing. For Adani Group, this development comes as a relief after months of battling negative headlines around its corporate governance.
Impact of Hindenburg Report on Adani
Back in January 2023, Hindenburg Research stunned global markets when it published a report accusing Adani Group of large-scale fraud, stock manipulation, and questionable accounting practices. The effect was immediate as panic selling among investors wiped off more than $100 billion from Adani’s overall market value within days.
The report had accused the conglomerate of inflating revenues, using shell companies, and exploiting loopholes to control stock prices. Although Adani Group dismissed all allegations as baseless, the impact lingered for months as stocks across its business verticals plunged. Global investors, rating agencies, and even policymakers closely monitored the issue, adding pressure on the conglomerate.
While Adani companies have regained some of their losses since then, the cloud of controversy has cast a long shadow. Monday’s stock rally following SEBI’s partial clearance shows that the conglomerate may finally be moving past the worst phase of the crisis, at least in the eyes of domestic investors.
Group-Wide Rally in Adani Stocks
It was not just Adani Power that showed a meteoric rise on Monday. Other listed entities of the group also posted gains. Adani Total Gas climbed nearly fifteen per cent, reinforcing investor confidence in the energy business. Adani Green Energy moved up by around seven per cent, reflecting improved sentiment in the renewable energy segment where the group has made large investments. Adani Ports and Special Economic Zone (SEZ) saw a more modest gain of 1.2 per cent, yet even that hinted at renewed confidence across the group’s infrastructure businesses.
The rally was broad-based and indicated that investor sentiment has shifted decisively after SEBI’s order. Market analysts pointed out that positive regulatory clarity often acts as a turning point in large corporate cases, especially when investor confidence has been tested by past allegations.
Analysts See Renewed Investor Confidence
According to Bajaj Broking Research, investor confidence in the Adani Group has seen a revival following SEBI’s partial clearance. In its research note released on Friday, the firm highlighted that the regulator’s order has triggered strong buying interest across sectors where the group operates. The brokerage added that this buying momentum reflects not just speculative interest but also a longer-term trend of regained trust in the group’s financial fundamentals.
Financial analysts argue that while the probe is still ongoing, the dismissal of some allegations signals that not every claim against Adani may hold weight. This is significant because short-seller reports often result in sharp stock declines regardless of factual accuracy. By clearing part of the case, SEBI has provided institutional investors with a degree of assurance to re-enter the group’s stocks.
Adani’s Long-Term Growth Prospects
Despite the controversies, Adani Group remains one of the largest infrastructure and energy conglomerates in India. Its businesses span across power generation, renewable energy, natural gas, logistics, ports, airports, and industrial zones. Over the past decade, the group has expanded aggressively both in India and overseas, positioning itself as a key player in India’s industrial growth story.
Adani Power’s stock split is being viewed as more than a cosmetic move. Analysts believe that the strategy reflects the group’s focus on attracting retail and institutional investors who want cheaper entry points amid a high-value share structure. With the expanding demand for power and energy in India, Adani Power’s capacity investments align with the market’s growth trajectory.
Similarly, Adani Green Energy has emerged as a major player in renewable energy, a segment that is expected to witness exponential growth over the next decade. The stock’s rise after SEBI’s clearance shows that investors are betting on long-term clean energy expansion despite temporary challenges.
Adani Ports and SEZ remains a cornerstone of India’s logistics network, operating some of the country’s largest ports. Although Monday’s gain was modest compared to other group companies, it reflects cautious optimism about the group’s infrastructure role.
Market Outlook and Investor Takeaways
For investors, the key takeaway from Monday’s rally is that regulatory clarity matters more than speculation in the long run. Stock markets often react strongly to allegations, but once regulators provide credibility by dismissing certain charges, confidence tends to return.
Adani Group’s shares are expected to remain under the spotlight in the coming weeks as SEBI continues with its larger probe. The outcome of those investigations, combined with market performance, will shape the long-term trajectory of the group’s stock valuations.
For now, the five-for-one stock split in Adani Power, combined with SEBI’s clearance of some allegations, has created a double-positive trigger. This has allowed the conglomerate to regain lost ground in the equity market and attract a wider base of retail investors.
In a Nutshell
The soaring performance of Adani Group shares on Monday signals a crucial moment for the conglomerate. A combination of stock split enthusiasm and regulatory relief has given the market a reason to restore confidence in Gautam Adani’s empire. While the shadow of the Hindenburg allegations is yet to vanish completely, the initial signs of recovery are unmistakable.
Adani Power’s sharp twenty per cent surge, along with gains in Adani Total Gas, Adani Green Energy, and Adani Ports and SEZ, reflects a renewed appetite among investors. Regulatory clearance from SEBI on certain allegations has provided not only a short-term rally but also a narrative of resilience that could define Adani Group’s future in India’s corporate landscape.
In the coming months, much will depend on the outcome of the remaining regulatory probes. Yet Monday’s rally may be seen as the turning point when investor sentiment shifted from scepticism to cautious optimism. For long-term investors, Adani Group continues to represent both risk and opportunity, but one thing is clear — the group is not out of the race and has re-entered the market spotlight with strong momentum.
