Asia’s richest billionaire is 45 billion poorer in… 2 days

Gautam Adani, an Indian billionaire, lost $45 billion in two days, the reason was the rapid fall in the shares of his company Adani Group.

As writes Bloomberg, the company’s shares fell sharply after the negative report of the American Hindenburg Research, published on January 24. It contained the results of a two-year investigation into multiple allegations of corporate abuse by the tycoon’s companies. The agency notes:

The devastating report weighs heavily on the Indian tycoon as it threatens to dampen investor sentiment over the sale of $2.5 billion worth of shares in his flagship company, Adani Enterprises. and vowed to release a detailed rebuttal on Friday.”

On Friday, shares of Adani Enterprises fell below Rs 3,276 and shed more than 19%. Global CIO Office CEO Gary Dugan said:

“These issues touch the heart of the Indian corporate sector, which is dominated by a number of family-controlled conglomerates. By their nature, they are opaque, and global investors have to rely on corporate governance issues. After last year’s outstanding performance, Indian stocks and stocks of any well-known company are at risk of lower returns. Thus, the broader Indian stock market could be in danger of falling further and Adani could be the catalyst.”

The drop in Adani’s stock is all the more unexpected as it follows a staggering rise in recent years. The five-year growth of Adani Enterprises surpassed even giants like Tesla and confidently brought Adani from relative obscurity to the ranks of the world’s richest people. Bloomberg explains the situation:

“The current troubles have plunged Adani’s fortune below the $100 billion threshold he passed last April. According to the Bloomberg Billionaires Index, he is worth about $97 billion, about 15% less than at the close of trading on Wednesday. Worries about the group’s finances have surfaced throughout the tycoon’s rise, with CreditSights saying in August that Adani’s conglomerate has a “deep glut of debt” with “stretched balance sheets.”But the latest report has drawn unprecedented attention to the group’s corporate governance, as well as India. generally”.

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