Gautam Adani pledges stronger governance following Sebi clean chit

Adani calls Sebi's verdict a resounding validation, vows tighter governance, stronger sustainability, and $100 bn investments in energy and infrastructure

Billionaire Gautam Adani has pledged to tighten governance across his infrastructure-to-energy conglomerate, seeking to reassure investors after the markets regulator dismissed allegations of fraud and stock manipulation by US-based short seller Hindenburg Research nearly three years ago.

 

The recent verdict by the Securities and Exchange Board of India is a “resounding and unequivocal” validation of the Adani Group’s conduct, he said in a letter to shareholders on Wednesday. “This moment is more than a regulatory clearance, it is a powerful validation of the transparency, governance and purpose with which your company has always operated. And the truest evidence of our resilience lies not in words, but in performance over this period,” said Adani.

 

 

The Adani Group, which spans ports, power, airports, cement and renewable energy, has been working to restore investor confidence since Hindenburg’s January 2023 report sent its shares tumbling and erased over $150 billion in market value at the peak of the crisis. The conglomerate stabilised its share prices with fresh equity infusions from global investors like GQG, refinancing, and prepaying debt. The group market valuation has still not reached the peak seen just before the Hindenburg report. Hindenburg shut operations early this year just before the Sebi sent it a notice for market manipulation.

 

Adani said the group would use the Sebi ruling as an inflexion point to rebuild credibility. “My promise to you is that we will further strengthen governance standards that inspire confidence across markets and regulators.” He pledged to accelerate innovation and sustainability initiatives and to continue investing in infrastructure projects critical to India’s growth.

 

“However, even as the storm raged, I remained acutely aware of the anxiety it created for our investors, lenders, suppliers and partners. It was your trust that steadied us, your patience that sustained us and your belief that emboldened us. For this extraordinary support, I am profoundly grateful,” he said.

 

The group delivered strong operating results despite the turbulence. Portfolio ebitda surged 57 per cent in two years to Rs 89,806 crore ($10.8 billion) in FY25, while the gross block of assets expanded nearly Rs 2 trillion to Rs 6.09 trillion. Landmark projects commissioned over the past two years include India’s first container transshipment port at Vizhinjam, the world’s largest renewable power project at Khavda, and a massive copper smelter and metallurgical complex.

 

“What was meant to weaken us has instead strengthened the very core of our foundations,” Adani said, thanking shareholders, lenders and partners for their patience during the crisis.

 

The conglomerate has positioned itself as a key player in India’s push for energy transition and infrastructure modernisation and plans to invest a massive $100 billion in the next five years. “Let this moment not merely restore confidence. Let it reaffirm what your company stands for — resilience in adversity, integrity in action and an unyielding commitment to building a brighter future for India and the world,” he said.