Adani stocks Group experienced a powerful rally on Friday, September 19, 2025, with gains ranging from 1% to 10% following a significant regulatory victory. The Securities and Exchange Board of India (SEBI) dismissed key allegations made by US-based short-seller Hindenburg Research against billionaire Gautam Adani and his conglomerate, providing much-needed clarity to investors who have waited over two years for resolution.
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- 1 Adani stocks rally September 2025
- 2 SEBI investigation Adani Group
- 3 Market Impact and Investor Relief
- 4 Adani Power Morgan Stanley Overweight
- 5 Strategic Implications and Future Outlook
- 6 Remaining Challenges and Market Outlook
- 7 Securities manipulation allegations cleared
- 8 Frequently Asked Questions: Adani Group SEBI Clearance
- 8.1 1. What exactly did SEBI dismiss in the Hindenburg case against Adani Group?
- 8.2 2. Are there still pending matters against Adani Group with SEBI?
- 8.3 3. How did Adani Group stocks react to the SEBI clearance?
- 8.4 4. What were the original Hindenburg Research allegations against Adani Group?
- 8.5 5. What does this SEBI clearance mean for Adani Group investors going forward?
Adani stocks rally September 2025
The market response was immediate and decisive. Adani Total Gas led the surge with gains of up to 13%, while flagship company Adani Enterprises climbed 4.3%. Adani Power emerged as another standout performer, jumping nearly 9.6% and reaching a one-year high, boosted not only by the SEBI clearance but also by Morgan Stanley’s initiation of coverage with an “Overweight” rating and a target price of ₹818, implying 30% upside potential.
SEBI investigation Adani Group
SEBI’s final orders, issued on Thursday, September 18, marked the conclusion of a 15-month investigation that began after Hindenburg Research published its damning 106-page report in January 2023. The regulator’s findings were unambiguous: there was no evidence that Adani Group used related-party transactions to route funds into its listed entities, nor were there violations of disclosure norms, insider trading, or market manipulation.
The investigation centered on allegations that three entities – Adicorp Enterprises, Milestone Tradelinks, and Rehvar Infrastructure – were used as conduits to channel funds from various Adani Group companies to publicly listed entities like Adani Power and Adani Enterprises. However, SEBI board member Kamlesh C. Varshney concluded in the orders that these transactions did not qualify as related-party dealings under the rules applicable at that time.
Crucially, SEBI noted that all loans had been repaid with interest before the investigation even began, and there were no allegations of fund siphoning or investor losses. The regulator emphasized that the definition of related-party transactions was narrower prior to April 2022, and the broadened definition introduced in 2021 amendments was prospective, not retrospective.
Market Impact and Investor Relief
The SEBI clearance provides significant relief to a conglomerate that saw its market capitalization plummet by over $150 billion following Hindenburg’s allegations. While most Adani stocks have since recovered, the regulatory uncertainty had created an overhang that weighed on investor sentiment.
Gautam Adani’s response on social media platform X captured the group’s vindication: “After an exhaustive investigation, SEBI has reaffirmed what we have always maintained, that the Hindenberg claims were baseless. Transparency and integrity have always defined the Adani Group”. He added pointedly, “Those who spread false narratives owe the nation an apology”.
Adani Power Morgan Stanley Overweight
Adding to the positive momentum, Morgan Stanley’s initiation of coverage on Adani Power with an “Overweight” rating provided additional validation for the group’s prospects. The global brokerage described Adani Power as “India’s largest private coal-based independent power producer” and projected the company’s capacity to grow 2.5 times to 41.9 GW by FY32, increasing its market share from 8% to 15%.
Morgan Stanley’s bullish thesis rests on several factors: resolution of regulatory challenges, strong balance sheet with net debt-to-EBITDA ratio of 1.5x in FY25, and India’s growing power needs driven by AI adoption, data centers, and electric vehicles. The brokerage forecasts EBITDA to triple by FY33, reaching ₹67,200 crore, reflecting a 17% compound annual growth rate.
Strategic Implications and Future Outlook
The timing of SEBI’s clearance is particularly significant as it comes during a broader rally in Indian markets driven by US rate cuts and progress in India-US trade talks. Foreign portfolio investors have been net buyers, purchasing shares worth ₹3.6 billion on Thursday alone, marking the fifth consecutive buying session.
For Adani Group, the regulatory clearance removes a major impediment to its ambitious expansion plans. The group has announced plans to invest around $60 billion up to FY32 in the power sector, with $21 billion allocated to scaling renewable energy capacity and $17 billion for transmission and distribution capabilities.
Remaining Challenges and Market Outlook
However, investors should note that while SEBI has cleared two specific charges, 22 other orders remain pending, involving allegations of stock manipulation through offshore entities and violations of minimum public float norms. This suggests that the Adani-Hindenburg saga may not be entirely concluded, though the most serious allegations have been addressed.
The market’s response reflects relief that the worst-case scenarios have been avoided. GQG Partners, one of the first strategic investors in Adani Group post-Hindenburg, saw notional gains of nearly ₹1,840 crore on Friday, highlighting the significant value at stake.
Securities manipulation allegations cleared
Looking ahead, the combination of regulatory clarity, strong operational performance, and positive analyst coverage positions Adani Group stocks for continued recovery. The group’s focus on infrastructure, renewable energy, and India’s long-term growth story aligns with broader investment themes that have attracted both domestic and international investors.
The SEBI verdict represents more than just legal vindication – it’s a restoration of credibility for one of India’s most prominent business conglomerates. As Gautam Adani noted in his statement, the group’s “commitment to India’s institutions, to India’s people and to nation-building remains unwavering”. For investors who weathered the storm since January 2023, Friday’s rally offers a glimpse of the potential rewards for patience and conviction in the face of short-seller attacks.
Frequently Asked Questions: Adani Group SEBI Clearance
1. What exactly did SEBI dismiss in the Hindenburg case against Adani Group?
SEBI dismissed two key allegations made by Hindenburg Research: that Adani Group used related-party transactions to route funds into listed entities, and that the group violated disclosure norms, insider trading rules, or engaged in market manipulation. The regulator found no evidence that three entities (Adicorp Enterprises, Milestone Tradelinks, and Rehvar Infrastructure) were used as conduits to channel funds inappropriately. SEBI noted that all loans had been repaid with interest before the investigation began, and there were no allegations of fund siphoning or investor losses.
2. Are there still pending matters against Adani Group with SEBI?
Yes, while SEBI has cleared two specific charges, 22 other orders remain pending. These involve allegations of stock manipulation through offshore entities and violations of minimum public float norms. This means the Adani-Hindenberg saga is not entirely concluded, though the most serious allegations regarding fund routing and market manipulation have been addressed.
3. How did Adani Group stocks react to the SEBI clearance?
Adani Group stocks surged between 1% and 10% on Friday, September 19, 2025. Adani Total Gas led with gains up to 13%, while Adani Enterprises climbed 4.3%. Adani Power jumped nearly 9.6% to reach a one-year high, boosted by both the SEBI clearance and Morgan Stanley’s “Overweight” rating with 30% upside potential. The positive reaction reflects investor relief after over two years of regulatory uncertainty
4. What were the original Hindenburg Research allegations against Adani Group?
In January 2023, Hindenburg Research published a 106-page report alleging that Adani Group engaged in “accounting fraud” and “stock manipulation” over decades. The short-seller claimed the group used a web of offshore shell companies to artificially inflate stock prices and manipulate financial statements. Hindenburg also alleged violations of foreign investment rules and accused the group of “pulling the largest con in corporate history”. These allegations caused Adani Group’s market capitalization to plummet by over $150 billion initially.
5. What does this SEBI clearance mean for Adani Group investors going forward?
The clearance removes a major regulatory overhang that has weighed on investor sentiment for over two years. Morgan Stanley’s bullish outlook adds validation, projecting Adani Power’s EBITDA to triple by FY33 and rating it “Overweight” with significant upside potential. For long-term investors, this represents restored credibility and positions the group for continued recovery, especially given their focus on infrastructure and renewable energy aligned with India’s growth story. However, investors should monitor the 22 pending SEBI orders and remain aware that some regulatory uncertainty persists.