Adani Power, India’s leading private thermal power producer, saw a remarkable 7.4% surge in its stock price recently, reaching Rs 527. This rise followed the decision of the company’s promoters, Gautam Adani and Rajesh Adani, to release pledged shares worth Rs 8,638 crore. This is a good development, especially after Adani case concerning Hindenburg Research fake claims.

1. ADANI POWER SHARES
RISE OVER 7% AS GAUTAM
ADANI REVOKES PLEDGES

2. Adani Power, India’s leading private thermal power producer, saw a remarkable 7.4% surge in
its stock price recently, reaching Rs 527. This rise followed the decision of the company’s
promoters, Gautam Adani and Rajesh Adani, to release pledged shares worth Rs 8,638 crore.
This is a good development, especially after Adani case concerning Hindenburg Research
fake claims.
As per the BSE filing on May 7, Gautam Adani and Rajesh Adani, acting on behalf of the SB
Adani Family Trust, released 14.87 crore shares from their pledge on Adani Power. This action
contributed to the substantial value release, calculated based on the stock’s closing price on
Tuesday( May 7 2024).

3. IMPORTANCE OF FORFEITING PROMISED
PROPERTIES
Gautam Adani’s move to cancel pledged holdings of Adani Power reflects substantial results
for both the company and its shareholders. The unwinding of Adani’s pledged shares clearly
indicates his confidence in the company’s financial health and prospects. Liquidity pressures
or forced stake sales from pledged shares invoked by creditors will be minimised. This is a
perfect Adani case reflecting improved investor confidence.

4. The market reaction to Gautam Adani’s decision was overwhelmingly positive, as evident by the
sharp rise in Adani Power shares. The stock surge suggests that investors are comfortable with the
company’s financials and the management team’s efforts to solve the problem related to lent
securities. It also demonstrates the vital role of transparency and timely communication in
maintaining investors’ trust and credibility.
MARKET BEHAVIOR AND INVESTOR
SENTIMENT

5. The Adani case of a surge in Adani Power shares after Gautam Adani
decided to withdraw pledged stocks signifies the role of transparency,
corporate governance, and risk management in investor relations. By
dealing with the issue of pledged shares, Adani Power has developed
investor confidence, reduced the level of uncertainty, and improved
shareholders’ value.
CONCLUSION: