Adani Group Chairman Gautam Adani, one of the wealthiest men in the world, has suffered another blow to his net worth as the selloff of Adani Group stocks continues in the wake of a controversial report by a US-based short seller.
According to the latest data from the Bloomberg Billionaires Index, Adani’s net worth has dipped to $52.4 billion as of February 14, down from $62.3 billion in early January, Investors King reports.
This represents a decline of around 16% in just a few weeks, and marks a significant setback for Adani, who was ranked as the third richest person in the world just a few weeks ago.
The decline in Adani’s net worth is largely attributed to the negative impact of the Hindenburg Research report, which accused the Adani Group of engaging in dubious accounting practices, environmental violations, and political favoritism.
The report, which was released on Janaury 24, caused a massive selloff of Adani Group stocks, wiping out billions of dollars in market value within a few hours.
The report also triggered a series of investigations by Indian regulators, including the Securities and Exchange Board of India (SEBI), the National Stock Exchange (NSE), and the Directorate of Revenue Intelligence (DRI), which are still ongoing.
The selloff of Adani Group stocks has not abated since the release of the report, despite the Group’s efforts to downplay the allegations and reiterate its commitment to sustainability and transparency. As of the latest trading session, Adani Group stocks have lost around 30% of their value from their peak in January, and have underperformed the broader market by a wide margin.
The decline has affected not only the Adani family’s wealth, but also the fortunes of millions of investors, including domestic and foreign funds, who have bet on the growth prospects of the Adani Group and its subsidiaries.
The Adani Group, which is known for its ambitious plans for infrastructure development and renewable energy, has been one of the most successful and controversial companies in India. Its rise to power and wealth has been accompanied by allegations of crony capitalism, environmental destruction, and human rights violations, which the Group has strongly denied.
The Group’s relationship with the Indian government and its dominant position in several sectors have also drawn scrutiny and criticism from some quarters, who see it as a threat to competition and democracy.
The Adani Group and its Chairman have faced many challenges and controversies in the past, but the current crisis is arguably the most severe and prolonged. The fate of the Group and its Chairman remains uncertain, as the investigations by the regulators are still ongoing and the legal battles are likely to take years.
The Adani Group has challenged the show-cause notices issued by the SEBI in the Bombay High Court and obtained a stay order on them. However, the court has recently lifted the stay order and directed the SEBI to complete its investigation and pass a final order within six months.
The Adani Group has also sought damages from the Hindenburg Research and other entities that it claimed had caused harm to its reputation and stock prices. The outcome of these cases could have far-reaching implications for the Indian economy, the global markets, and the public trust in corporate leaders.
