SEBI Clears Adani of Hindenburg Allegations; Stocks Soar After Verdict

On September 18, 2025, Adani stocks surged as markets opened, following SEBI’s formal clearance of all allegations raised by Hindenburg Research in January 2023. The positive news reignited investor confidence and sparked a sharp relief rally that outpaced broader market sentiment.

Let’s dive in to understand the Hindenburg allegations, how they impacted the Adani Group and Gautam Adani personally, the details of SEBI’s recent announcement, and how the market responded to this regulatory clarity.

The Hindenburg Allegations

Hindenburg Research’s short-seller report in January 2023 accused the Adani Group of committing accounting fraud, stock manipulation, and money laundering. The core charges included:

• Stock manipulation & valuation inflation: Alleged recycling of funds through offshore shell companies in Mauritius, Cyprus, UAE, and the Caribbean to boost Adani stock prices and evade SEBI rules on public shareholding.
• Undisclosed related party transactions: Privately-held shell companies linked to Adani family members were said to funnel money through opaque structures, masking promoter holdings and creating suspicious investments.
• Excessive leverage & risky debt practices: Heavy reliance on pledged shares as collateral raises solvency risks.
• Opaque governance: Family-centric management structure involving associates with key roles previously investigated or arrested, raising concerns about oversight and transparency.
• Alleged regulatory complicity: Hindenburg claimed on  SEBI’s delayed oversight on various complaints and flagged suspicious Mauritius-based fund flows in Adani stocks.

The report’s impact was immediate. Adani stocks plummeted, valuations shrank, and Gautam Adani’s global billionaire ranking took a severe hit.

The Historical Fallout: Market Cap and Net Worth Erosion

The Hindenburg saga was more than just a short-seller report; it was a credibility storm that shook one of India’s largest corporate houses. In just ten days after January 24, 2023, Gautam Adani’s fortune was effectively halved.

• He entered 2023 as the world’s third-richest man with a net worth of $126.4 billion, alongside global titans like Elon Musk and Jeff Bezos. But once the allegations surfaced, his wealth began a rapid descent, slipping to $120 billion, then below $100 billion by January 27, pushing him out of the world’s top five billionaires.
• The slide continued: by February 1, Adani lost his crown as Asia’s richest man to Mukesh Ambani and tumbled to No. 15 on the global billionaire list. Within days, he fell further to 16th and even briefly dropped out of the top 20, with his net worth bottoming near $58 billion, less than half of what it had been at the start of the year.
• On the market front, the impact was equally severe. Adani Enterprises, the flagship, tanked by 28% in a single day on February 1, 2023.
• The group was forced to cancel its $2.5 billion follow-on public offer, calling it “morally incorrect” to proceed amid such market volatility.
• By early February, the group’s listed firms had collectively shed over $117 billion in market value according to Bloomberg, making it one of the most dramatic wealth erosions in Indian corporate history.

For a man whose meteoric rise symbolized India’s growth story, the reversal was swift and brutal.

The SEBI Verdict: A Clean Chit

After nearly three years of scrutiny, on September 18, 2025, SEBI released two comprehensive orders, officially stating that all allegations against the Adani Group were unsubstantiated. Key takeaways from the announcement:

• No evidence of fraud or manipulation: The charges of stock rigging, insider trading, and related party transaction violations were not proven.
• Regulatory context matters: SEBI clarified that several related party norms were updated only in 2021, and older transactions couldn’t be retroactively judged.
• Genuine financial dealings: Flagged transactions were legitimate business activities, fully repaid, and in compliance with disclosure norms.
• Conclusion: Adani Group and its listed entities were cleared of all allegations cited in the Hindenburg Report.

This verdict, the Adani Group finally shakes off the regulatory cloud that had shadowed it for nearly three years.

Market Reaction: Relief Rally Across Adani Stocks

Investors reacted quickly to SEBI’s verdict, sending Adani stocks sharply higher as markets opened on September 18, 2025:

• Adani Total Gas Ltd led the charge with a gap-up opening, climbing by 10.3% intraday
• Adani Power Ltd surged 13.35%.
• Adani Enterprises Ltd opened strong at 4.2% and later rose further to 7.2%..
• Adani Green Energy Ltd gained 9%.
• Adani Energy Solutions Ltd added 7%.
• Adani Ports and SEZ also saw a gap-up, advancing 2.3% and reaching 3% intraday.

The gains weren’t just about broader sector trends; the sharp rally highlighted investors’ recognition of the group-specific relief after years of regulatory overhang.

For a detailed look at all listed Adani Group companies and their market performance, check out Adani Group 

What This Means for Investors and Companies

• Regulatory clarity boosts sentiment: SEBI’s clean chit removes nearly three years of uncertainty, giving investors a clear signal that the allegations had no merit, a fact already reflected in the strong surge across Adani stocks.
• Growth and Institutional Interest: With allegations cleared, Adani can pursue expansion and capital raising, while previously cautious institutional investors may re-enter, bringing fresh liquidity and stability to the group’s shares.
• Restored retail confidence: For individual investors, the SEBI ruling provides reassurance that the companies are fundamentally compliant, reigniting trust and demand for Adani stocks.
• Reputational reset with a forward lens: While the SEBI ruling clears past doubts, ongoing scrutiny remains. Execution, transparency, and disciplined risk management will be critical to sustaining credibility and investor confidence in the long term.

Conclusion: A Turning Point for Adani Stocks

SEBI’s clean chit is more than just a regulatory closure; it’s a validation of the Adani Group’s integrity. The verdict has already been reflected in the market, with all major Adani stocks surging sharply as markets opened, signaling renewed investor confidence. For investors, this is a moment to reassess the opportunity. The overhang of allegations is gone, but careful evaluation of fundamentals, valuations, and execution remains key.

Looking ahead, the group can leverage this credibility to accelerate growth across infrastructure, energy, and logistics, while institutional and retail investors gain confidence in the company’s governance and stability.

In short, SEBI’s ruling has transformed uncertainty into resilience, credibility, and renewed opportunity for both the company and its investors.

Disclaimer
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. The securities are quoted as an example and not as a recommendation.This is nowhere to be considered as an advice, recommendation or solicitation of offer to buy or sell or subscribe for securities. INDStocks SIP / Mini Save is a SIP feature that enables Customer(s) to save a fixed amount on a daily basis to invest in Indian Stock. INDstocks Private Limited (formerly known as INDmoney Private Limited) 616, Level 6, Suncity Success Tower, Sector 65, Gurugram, 122005, SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500, Research Analyst Registration No. INH000018948 BSE RA Enlistment No. 6428. Refer https://indstocks.com/pricing?type=indian-