Adani’s net worth plummets by .5 billion in one day after short seller allegations

Adani’s net worth plummets by $5.5 billion in one day after short seller allegations

  • Indian billionaire Gautam Adani’s fortune plunged $5.5 billion to $113 billion on Wednesday.
  • This was after a short seller alleged that Adani’s conglomerate was involved in fraud and market manipulation.
  • Adani is still the richest Asian in the world and the fourth richest person.

Gautam Adani, the world’s richest Asian, saw his fortune plummet by $5.5 billion on Wednesday after a US short seller attacked his business empire on fraud allegations.

New York-based short seller Hindenburg Research alleged in a report on Wednesday that the Adani Group “has engaged in a brazen scheme of stock manipulation and accounting fraud over the course of decades.”

Hindenburg said the moves pushed up share prices in seven key publicly traded companies under the Adani Group, which in turn helped boost the industrialist’s net worth by more than $100 billion in three years.

Adani, the chairman and founder of India-based conglomerate Adani Group, has been in the spotlight in recent years for his massive net worth, which rose more than 50% by 2022, according to the Bloomberg Billionaires Index.

As of early 2022, it was ranked 14th on the index. By December 29, he was the third richest person in the world, surpassing Bill Gates and Warren Buffet. Adani ended 2022 with a fortune of $121 billion, but that’s now down to $113 billion after the scathing Hindenburg report.

Jugeshinder Singh, Adani Group’s chief financial officer, denied Hindenburg’s allegations, saying in a statement that the report is “a malicious combination of selective misinformation and outdated, unsubstantiated and discredited allegations that have been proven and rejected by the highest courts.” of India”.

Even so, shares of Adani’s listed companies fell after the publication of the Hindenburg report. Shares of the billionaire’s flagship Adani Enterprises fell as much as 3.7% on Wednesday, before closing down 1.5%, while shares of Adani Ports and the Special Economic Zone fell as much as 7%. and closed with a fall of 6.3%.

As most of Adani’s wealth is derived from the stakes he has in his companies, his net worth also plummeted on Wednesday to the tune of $5.5 billion, which is almost 5% of his net worth on Tuesday, in one day, according to the Bloomberg Billionaires Index. .

Even so, Adani remains the richest person in Asia and the fourth richest person in the world after LVMH boss Bernard Arnault, Elon Musk and Jeff Bezos.

Gautam Adani did not immediately respond to Insider’s request for comment sent through the Adani Group.

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