Adani family overtakes Ambanis as India’s richest after SC ruling spurs stocks rally
After the Supreme Court in Wednesday’s ruling refused to intervene in the market regulator’s investigation into allegations of stock price manipulation by the Adani Group.
The shares of the power-to-ports giant experienced a significant surge. In what is considered a favourable ruling for the Ahmedabad-based conglomerate, the group’s stocks soared by up to 12 per cent on Wednesday, contributing to an overall market capitalisation gain of over ₹15 lakh crore.
As a result of these gains, Gautam Adani’s family surpassed Mukesh Ambani of Reliance Industries, reclaiming the title of India’s wealthiest promoter, Business Standard reported (the news report is behind paywall)
On Wednesday, the net worth of the Gautam Adani family increased to ₹9.37 lakh crore, up from ₹8.98 lakh crore a day earlier.
In comparison, the net worth of the Mukesh Ambani family slightly decreased to ₹9.28 lakh crore from ₹9.38 lakh crore during this period.
Adani Group stocks rally
• Adani Energy Solutions surged by 11.60 per cent to reach ₹1,183.90.
• Adani Total Gas witnessed a notable increase of 9.84 per cent, closing at ₹1,099.05.
• Adani Green Energy displayed a solid performance, climbing 6 per cent to ₹1,698.75.
• Adani Power’s shares ended 5 per cent higher at ₹544.65.
• Adani Wilmar experienced a gain of 3.97 per cent, closing at ₹381.05.
• NDTV shares jumped by 3.66 per cent to settle at ₹281.60.
• Flagship firm Adani Enterprises saw a 2.45 per cent increase, closing at ₹3,003.95.
• Adani Ports recorded a 1.39 per cent rise, reaching ₹1,093.50.
• Ambuja Cements shares rose by 0.94 per cent to ₹535.60.
• ACC inched up by 0.10 per cent, closing at ₹2,270.
Supreme Court’s judgment into Adani-Hidenburg issue
On Wednesday, the Supreme Court declined to transfer the investigation into allegations of stock price manipulation by the Indian corporate giant to a special investigation team or the CBI. The court emphasised that market regulator SEBI was conducting a “comprehensive investigation,” and its conduct “inspires confidence.”
Highlighting the limited power of the court to enter the regulatory domain of the Securities and Exchange Board of India (SEBI) in framing delegated legislation, the apex court directed SEBI to promptly conclude the two pending investigations, preferably within three months.
A bench led by Chief Justice D Y Chandrachud said that reliance on newspaper articles or reports by third-party organisations like the Organised Crime and Corruption Reporting Project (OCCRP) to question a comprehensive investigation by a specialised regulator does not inspire confidence.
The bench, also comprising Justices J B Pardiwala and Manoj Misra, acknowledged that SEBI has concluded 22 out of the 24 investigations into allegations against the Adani Group.
After the judgment, billionaire Gautam Adani said, “The Hon’ble Supreme Court’s judgment shows that truth has prevailed. Satyameva Jayate.”
In a statement on the judgment, Congress general secretary in-charge communications Jairam Ramesh criticised Adani, saying that “truth dies a thousand deaths when we hear Satyameva Jayate from those who have gamed, manipulated, and subverted the system this past decade.”