BENGALURU: Shares of Adani Enterprises on Friday bounced back to levels last seen in January 2023, before a report by U.S. short-seller Hindenburg Research triggered a sell-off in billionaire Gautam Adani's ports-to-power conglomerate.

Shares of the Adani group's flagship company rose as much as 2% to 3,453.7 rupees. The stock had closed at 3,442 rupees on Jan. 24, 2023, the session before Hindenburg in a report accused the group of stock manipulation and improper use of tax havens.

The group, which refuted the allegations, suffered a loss of as much as $150 billion in combined market value, as the short-seller's report roiled investor confidence and resulted in intense regulatory scrutiny.

Adani Enterprises' stock plunged about 70% to a two-year low within just seven days after the report.

Although the market value of the main stocks, including Ambuja Cement, ACC, and NDTV are still down about $22.35 billion from pre-Hindenburg levels, the shares have staged a smart recovery.

That's partially due to investments from Abu Dhabi-based International Holding and U.S. boutique investment firm GQG Partners, which helped Adani shore up confidence by diluting some of the family's tight shareholding.

Moreover, surges that followed a court-appointed panel saying in May that India's markets watchdog "drew a blank" and India's top court saying no further scrutiny was needed in January, also bolstered support for Adani Enterprises' stock.

Friday's climb follows the previous session's 8% rise after reports that the Adani group flagship could be included in the S&P BSE Sensex index.

It is on track to have risen in nine out of ten straight sessions, if the day's gains hold.

Adani Enterprises is the fourth of the seven group companies to have returned to pre-Hindenburg levels.

Adani Ports, Adani Total Gas, and Adani Power have already surpassed levels seen before the report.

However, Adani Energy, Adani Wilmar and Adani Green Energy are still below their pre-Hindenburg close.

Adani Enterprises, which along with Adani Ports is part of India's benchmark Nifty 50 index, was last up 1.7%.

(Reporting by Varun Hebbalalu in Bengaluru; Editing by Eileen Soreng)