Indian billionaire Gautam Adani will attend the 51st Jewelry and Jewelry Awards held in Jaipur, India on November 30, 2024.
Stringer | Reuters
Shares in Adani Group Companies rose sharply on Monday. Adani Powera surge of nearly 20% after a 5-1 stock split was enabled.
Companies typically implement stock splits to make stocks more accessible to current and potential investors. Stock splits also increase liquidity in listed companies.
The rally came on Friday after several allegations made by India’s Securities and Exchange Commission (SEBI), an Indian market regulator, after which several allegations of stock manipulation and accounting fraud were made last year by short seller Hindenburg Research.
Citing two sources with first-hand knowledge of the investigation, Sebi is still considering more than 12 allegations against the conglomerate, Reuters reported.
Hindenburg’s January 2023 report accusing the Adani group of massive fraud and stock manipulation, sweeping over $100 billion from conglomerates at the time.
Some of its shares have since recovered, but allegations have been posted.
Stocks of other companies within the group, such as Adani Total Gas. Mite Green Energy and Adaniport and Sez It increased by 15%, 7% and 1.2% on Monday, respectively.
The group’s stocks also rose on Friday. After Sebi cleared several alleged groups in the Hindenburg investigation, Bajaj Broking Research said in a memo on Friday it caused “investment trust and strong buying profits across the conglomerate.”
