Billionaire Gautam Adani’s attempt to restore confidence in his business empire has failed investors.
Shares of most of the Adani Group’s Indian companies continued to fall on Monday, January 30, amid the scandal. Stock market losses totaled $72 billion in three days, Bloomberg reported.
It was noted that the situation was not prevented by the fact that the Indian conglomerate over the weekend tried to refute the allegations of fraud by the American Hindenburg Research.
The Adani Group called Hindenburg’s claims baseless, comparing them to an attack on India itself. However, the company’s report expressed long-standing investor concerns about the group’s corporate governance.
This situation also threatens to undermine general confidence in India, which until recently was Wall Street’s top investment destination, and hastened the nascent shift toward China’s reopening.
On Monday, shares of Adani Total Gas Ltd. and Adani Transmission Ltd. fell by 20%, and Adani Green Energy – by 18%. Shares of Adani Power and Adani Wilmar fell 5% each, while Adani Ports and Special Economic Zone fell 0.5%.
The situation in the stock market has been a dramatic blow to the 60-year-old head of the Adani Group, Gautam Adani, who in recent years has become one of the three richest people in the world and now has lost a large part of his fortune , which is estimated at $125 billion.
Remember, on January 24, Hindenburg Research published a report on the results of a two-year investigation into numerous abuses by the tycoon’s companies.
It states that the Adani Group “has been engaged in a brazen scheme of stock manipulation and accounting fraud for decades.”
The devastating report came days before flagship company Adani Enterprises Ltd. launched the largest initial public offering in India’s history, aiming to raise 200 billion rupees ($2.5 billion).
Earlier it was reported that by 2022 the fortune of Russian oligarch Roman Abramovich had dropped by more than 50%, to $7.8 billion.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.