Adani Loses $6 B after Short Seller’s Report

houstoN: India and Asia’s richest Gautam Adani’s net worth plunged significantly in just a day after a sharp fall in bonds and stocks of the seven listed Adani group companies that fell between 3% and 7% yesterday as Hindenburg, a well-known US short-seller, said key listed companies in the group controlled by billionaire Gautam Adani had substantial debt, which has put the entire group on a ‘precarious financial footing.’

As per the Bloomberg Billionaires Index, Gautam Adani lost about $6 billion (around Rs. 48,600 crore), down nearly 5%, in a day and his net worth currently stands at $113 billion as of January 26, 2023. The Bloomberg Billionaires Index prepares the daily rankings of the 500 wealthiest people. The figures are updated at the close of every trading day in New York.

The Adani Group, however, termed the report on the group “malicious combination of selective misinformation and stale” and is exploring legal action against the US investor on its report alleging “brazen” market manipulation and accounting fraud by Asia’s richest man’s empire.

The report coincided with Adani’s upcoming Rs. 20,000 crore followon public offer (FPO) which opens on Friday and close on January 31. It will sell shares in the price band of Rs. 3,112 to Rs. 3,276 apiece. The flagship firm Adani Enterprises Ltd on Wednesday said it has raised Rs. 5,985 crore from anchor investors ahead of its FPO.

Gautam Adani lost $6 billion after Hindenburg report.

Gautam Adani, 60, is the founder of conglomerate Adani Group, the largest port operator in India. The Ahmedabad, India-based infrastructure group is also India’s largest closely held thermal coal producer and largest coal trader. His $13 billion (revenue) Adani Group’s interests span infrastructure, commodities, power generation and transmission and real estate.

He owns 75% stakes in Adani Enterprises, Adani Power and Adani Transmissions, according to March 2022 stock exchange filings. He also owns about 37% of Adani Total