Shares of the Adani Group were rocketing on Tuesday morning as media reports suggested that the US government looked into the allegations of corporate fraud before approving a hefty loan of up to $553 million for a Sri Lankan container terminal project.
What Happened: The US short-seller Hindenburg Research had made grave allegations against the Adani Group, causing a nearly $100 billion reduction in its market value. However, as per a Bloomberg report, the International Development Finance Corp. (DFC) dismissed these allegations during their due diligence investigation. The US agency found that the accusations, which termed Gautam Adani’s actions as “the largest con in corporate history,” were not applicable to Adani Ports, the subsidiary in charge of the Sri Lanka project.
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The DFC, despite its decision, will keep a close watch on the Indian conglomerate to avoid unintentional endorsement of any financial irregularities. The Sri Lankan port deal, one of the most significant US government-backed infrastructure projects in Asia, is part of a larger American endeavour to counter China’s expanding influence in the region.
The Adani Group has categorically denied the allegations made in the Hindenburg report, including those of stock-price manipulation. Despite ongoing regulatory investigations and court hearings in India, no malpractice has been unearthed.
The report comes in the midst of the Adani Group’s major recovery at the bourses, that started last week. Last month, the Supreme Court ruled that it cannot initiate a probe based solely on reports without giving the implicated entities a chance to present their case. This week, the stock received further strength as the ruling party BJP swept major state elections.
Price Action: Here is how Adani Group stocks were trading as the market opened on Tuesday.
ACC Ltd shares traded 4.14% higher at ₹2,103.00.
Adani Energy Solutions traded 3.34% higher at ₹932.30.
Adani Enterprises share price traded 6.31% higher at ₹2,688.90.
Adani Green Energy Ltd traded 5.79% higher at ₹1,188.40.
Adani Ports share price traded 6.51% higher at ₹935.95.
Adani Power’s share price traded 4.56% higher at ₹485.80.
Adani Total Gas Ltd traded 3.39% higher at ₹756.95.
Adani Wilmar Ltd shares traded 2.66% higher at ₹355.50.
Ambuja Cements Ltd traded 5.47% higher at ₹500.40.
New Delhi Television Ltd shares traded 2.53% higher at ₹230.80.
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