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Tuesday, March 21, 2023

Stock Wipeout Reaches $86 Billion, Dethroning Adani as Asia’s Richest Person

Gautam Adani now ranks 15th on the Forbes richest person list

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Hrishita Chatterjee
Hrishita Chatterjee
Covering culture and trending topics

INDIA: The share price of Gautam Adani’s multinational conglomerate company fell once further on Wednesday as a result of a slump in his company’s value, which fell to $86 billion as a result of the US short-seller report depriving him of the title of Asia’s richest person.

The stock losses made the Indian tycoon go down the ladder to the 15th on the Forbes richest person list on Wednesday, with a current estimated net worth of $75.1 billion. He now ranks below Mukesh Ambani, Chairman of Reliance Industries, who now ranks ninth and with a net worth of $83.7 billion. The Indian tycoon had ranked third in accordance with the US seller report, Hindenburg.

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He had his aspirations high and, with an increase in the fortunes and assets in recent years, synched with stock values of his businesses like ports, airports, mining, cement and power. Stabilising his companies happen to be a priority for him now.

The share went down a day after Adani Group procured support from investors for a $2.5 billion share sale. Hindenburg research report accused improper use by the group of offshore tax havens and stock manipulation. 

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However, the group has denied allegations, saying that the narrative of stock manipulation has “no basis”. India’s market regulator will include Hindenburg’s report in its own preliminary investigation. 

Hindenburg mentioned that it had shortened US bonds and non-India derivates of the Adani Group. The state-run Life Insurance Corporation of the country said that it would clarify the matter with the businessman’s management on the short seller report. $4.23 % state was owned by LIC in the enterprises as of December end and nearly 9% in the Ports and Special Economic zone.

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Shares of cement companies like ACC and Ambuja Cements, which the Adani Group acquired from Holcim of Switzerland last year for $10.5 billion dipped to 6.2% and 16.7%, respectively.

According to a report by Bloomberg, Credit Suisse (CSGN.S) no longer accepts bonds issued by members of the Adani group as collateral for margin loans to its private banking clients. The overall market capitalization of the seven listed companies is currently around $131 billion.

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