After being accused of pulling the biggest fraud in corporate history by Hindenburg Research, the Adani Group was hit by the worst stock market routs in recent history. From roadshows to legal threats and strong statements, everything failed to restore investor confidence in Adani, before a Rs 15,000 crore investment by GQG Partners turned things around. Funds pulled more funds as money worked its magic in the market, and Adani's stocks surged by almost 100 per cent within a week.
Gold rush for opportunists
Before the investment from Sanjiv Jain's US-based fund, Adani's stocks had hit their 52-week low by the end of February 2023. But as the stake sale invited more investors amid a sell off, Adani Enterprises went up by 95 per cent, followed by Adani Ports, which gained 75 per cent. Jain has already called the chance to buy into Adani at its worst an opportunity arising from crisis, and the same must be the case for those who decided to pick up the stocks being dropped by most like hot potatoes.
Further growth yet to come?
Now that Adani stocks seems to be flying off the shelves like hot cakes, the five-day green streak has almost doubled the size of those investments. For the rest, its a missed opportunity, although the rally is expected to last for while, with Jain expressing confidence that the Hindenburg saga will be forgotten. He even cited the example of Infosys, which lost 40 per cent market value after a whistleblower crisis, but regained investor confidence later on.
(To receive our E-paper on WhatsApp daily, please click here. To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)