Adani Group Shares Surge Amid Fund Raise Bid, Mauritius Minister Refuting Hindenburg's Allegations

Adani Group's shares surged on Thursday (11 May) after Mauritius Financial Services Minister Mahen Kumar Seeruttun refuted the allegations made by the Hindenburg Research report regarding shell companies in the country.

Adani Enterprises rose by over 4 per cent shortly after the market opened. Adani Green Energy, Adani Power, Adani Transmission, and NDTV followed with gains of almost 2 per cent during early morning deals on Thursday.

Adani Ports' shares rose by over 1 per cent, while Adani Wilmar's shares gained roughly 1.50 per cent.

On Wednesday (10 May), Mahen Kumar, the Financial Services Minister of Mauritius, dismissed allegations made by Hindenburg Research that shell companies were operating from the island nation.

Speaking in Mauritian Parliament, Seeruttun described the accusations as false and baseless and stated that Mauritius was fully compliant with OECD tax rules. He added that Mauritius was in compliance with OECD-mandated tax rules.

Replying to a question of a Mauritius lawmaker, the financial services minister said, "At the outset, I wish to inform the House that the allegations of the presence of shell companies in Mauritius are false and baseless," reports Livemint.

He added that shell companies are not allowed in Mauritius as per the law.

The statement by the Mauritius minister comes just a day before the Hindenburg-Adani issue hearing in the Supreme Court of India.

The Supreme Court, which had appointed an expert committee to investigate regulatory issues, is likely to take up a plea by SEBI, the capital market regulator, for a six-month extension in timelines to investigate allegations against the Adani Group.

Adani Enterprises has scheduled a board meeting on 13 May to approve a proposal to raise funds.

This announcement follows the company's withdrawal of its Rs 20,000-crore follow-on public offer (FPO) in February after the Hindenburg row.

Adani Enterprises plans to raise funds through issuance of equity shares or eligible securities through "a private placement, a qualified institutions placement, or a preferential issue".