On June 27, 2023, there were significant block trades amounting to $900 million involving Adani Enterprises and Adani Green Energy. As a result, the shares of Adani Enterprises experienced a surge and closed the day with an 11.8% increase. Nevertheless, the trading value of Adani Group firms remains below their pre-Hindenburg levels.
Foreign institutional investors (FIIs) reportedly executed these block trades. Over the past few months, these FIIs have been purchasing Adani Group stocks, believing that the group is undervalued. However, despite their efforts, the stocks continue to trade below their pre-Hindenburg levels as investors remain cautious due to the allegations made by the short seller.
In January 2023, the Hindenburg report accused the Adani Group of engaging in share price manipulation through offshore companies. Additionally, the report claimed that the group companies were involved in accounting fraud. Although Adani Group has denied these allegations, the report has had a negative impact on the stock prices.
The block trades on June 27 indicated that some investors are starting to recognize the value of Adani Group stocks. However, it is important to note that the stocks are still trading below their pre-Hindenburg levels. The full recovery of the group from the report remains uncertain and will require further observation.
