Shares in Indian billionaire Gautam Adani’s conglomerate fell again on Wednesday. Due to the setbacks his company is worth up to $84 billion according to the US short selling report. The billionaire also lost his title as Asia’s richest person.
Wednesday’s stock losses dropped Adani to No. 15 on Forbes’ billionaire list, with an estimated net worth of $76.8 billion. That’s lower than rival Mukesh Ambani, chairman of Reliance Industries, who ranks ninth with a net worth of $83.6 billion.
Prior to the important report by Hindenburg, US short seller Adani was in third place.
The loss was a huge setback for Adani, a billionaire who dropped out of college and became a billionaire. It has business interests ranging from ports and airports to mining and cement. Now the entrepreneur is fighting to stabilize his business and protect his reputation.
It comes just a day after the group was able to amass $2.5 billion in investor backing. sell stock for flagship company Adani Enterprises on Tuesday, seen by some as a stamp of investor confidence.
A report by Hindenburg Research last week accused Adani Group of misuse of offshore tax havens and stock manipulation. It also raised concerns about the high debt and valuation of seven publicly traded Adani companies.
available group deny the allegationsSaying that short sellers’ tales about stock manipulation “There is no basis” and is caused by ignorance of Indian law. The required regulatory information is always disclosed.
Shares in Adani Enterprises (Adele. Miss.)Often referred to as a business incubator, Adani tumbled 30% on Wednesday. (ADAN.NS) down 5% while Adani Total Gas (ADAG.NS) Reduced by 10%, down to the daily price limit.
Adani Gear (ADAI.NS) decreased by 6% and Adani Port and the Special Economic Zone (APSE.NS) 20% off
Adani Total Gas joint venture with France’s Total (OHEC)It was the biggest blow of the short selling report. with a loss of approximately $ 2.7 billion
“There was a slight rebound yesterday after the selloff. After looking improbable at one point, now weak market sentiment has surfaced again after the Hindenburg report,” said Ambareesh Baliga, an independent market analyst in Mumbai.
“The stock’s fall despite Adani’s argument clearly shows the damage to investor sentiment. It will take some time to balance,” Balika added.
fact check
Bloomberg reported on Wednesday that Credit Suisse (CSGN.S) It has stopped accepting Adani Group bonds as collateral for margin loans to private bank customers.
Deven Choksey, managing director of KRChoksey Shares and Securities, said this was a major contributor to Wednesday’s stock price drop.
Credit Suisse had no immediate comment.
The conglomerate’s scrutiny is on the rise, the Australian regulator said on Wednesday. Review of Hindenburg’s allegations to see if there are any further inquiries
The data also showed foreign investors net sold $1.5 billion worth of Indian stocks following the Hindenburg report, the biggest outflow in four consecutive days since Sept. 30.
The headaches for the Adani group are expected to continue for some time.
The Indian market regulator, which is considering the conglomerate deal, said it would. increase Hindenburg’s report to his own preliminary investigation.
State-run Life Insurance Company (LIC) (LIFI.NS)say On Monday it sought clarification from Adani executives on the short seller report, however, the insurance giant was a key investor in Adani Enterprises’ stock sale.
Hindenburg said in its report that it had shorted the Adani group’s US bonds and non-Indian derivatives.
