Adani Group: Fraud allegations reportedly affect the wealthiest man in Asia
The wealth of Indian billionaire Gautam Adani was reduced by much more than $20 billion on Friday as a result of investors leaving his enterprises for a second day as a result of fraud allegations brought by a US investment company.
The Adani Group has brushed off the claim as fake, but this hasn’t stopped the fury.
A probe has been requested by India’s largest opposition party.
A $50 billion market value loss has occurred in the publicly traded companies of the firm.
The valuation of the firm’s publicly traded companies has decreased by nearly $50 billion.
Adani Industries, the company’s flagship, saw a nearly 20% decline in share price on Friday, and other publicly traded companies in the group experienced even greater declines. Business in Mumbai was consequently immediately suspended.
While keeping his estimated $96 billion in wealth, Mr. Adani has fallen from the 3rd wealthiest man in the world to the 7th on Forbes’ rich list.
The backlash occurs just days after Hindenburg Research, a firm that focuses on “relatively brief,” or placing bets against a company’s shares in the hope that it will decline, released a report trying to accuse the Adani Group of participating in decades-long, “brazen” stock exploitation and financial reporting fraud.
Its research was released in advance of an Adani Enterprises share sale that was initially expected to generate significant interest.
Investing in ports, airports, renewable energy, and other businesses has helped Mr. Adani, a self-made businessman, built up a fortune. His wealth had grown during the previous three years due to the enormous increase in the share price of his companies.
His company claimed that Hindenburg was the subject of legal proceedings.
Mr. Adani, who backs Indian Prime Minister Narendra Modi, has long been the subject of allegations from politicians in the opposition that he has benefitted from his connections, which he strongly denied. Billions of dollars have been invested in or financed for businesses connected to the Adani Group by numerous Indian banks and state-owned insurance firms.
Some of India’s top public-sector banks indicated they weren’t concerned about dangers related to the company in interviews with Reuters.
The incident has, however, hurt the overall stock market, which contributed to Friday’s more than 1% decline in India’s benchmark Nifty 50 stock index.