Hindenburg Report Effect: Gautam Adani Slips To 7th On World's Richest List
Asia's richest man Gautam Adani has lost around $22.5 billion in two days after Hindenburg Research accused the Adani Group of stock market manipulation.
On Friday, Adani dropped to the 7th position in the world's richest list. In September 2022, Adani became the second richest person in the world.
From 3rd to 7th in two days
According to the Forbes Real Time Billionaires list, on Friday, Adani slipped to the 7th position from 3rd, where he was placed before the report was published.
His net worth stands at $96.5 billion as of January 27, 2023, declining more than $22.7 billion (19%), as per Forbes data.?
Adani is now placed below Microsoft founder Bill Gates whose fortune was estimated at $104.1 billion on the rich list.?
This is also the first time since he crossed the threshold Adani's wealth dropped below $100 billion.
Adani Group companies shares fall?
Shares of several Adani Group companies have nosedived in the past two days following the report's publication which accused the company of fraud.
Adani Transmission shares tumbled over 19%, Adani Total Gas sank 19.1% in their biggest daily drop since mid-March 2020, while Adani Green Energy sank about 16% on the BSE.
What Hindenburg Research said
US-based activist investor Hindenburg Research has claimed in a report that Adani Group was involved in a "brazen stock manipulation and accounting fraud scheme over the course of decades."
According to Hindenburg Research, its findings are based on a two-year-long investigation into the Adani Group.
It said that the research involved interviewing multiple individuals, including former senior executives of the Adani Group, examining thousands of documents, and conducting due diligence site visits in nearly a dozen countries.
"Gautam Adani, founder and chairman of Adani Group, has amassed a net worth of roughly USD 120 billion, adding over USD 100 billion in the past 3 years largely through stock price appreciation in the group's seven key listed companies, which have spiked an average of 819 per cent in that period," the US researcher's report had said.
The Hindenburg's report details a web of Adani-family-controlled offshore shell entities in tax havens spanning the Caribbean and Mauritius to the United Arab Emirates, which it claims were used to facilitate corruption, money laundering and taxpayer theft while siphoning off money from the group's listed companies.
Adani's response fails to win investors
Adani Group rejected the Hindenburg Research report and called it a 'malicious combination of selective misinformation and stale, baseless and discredited allegations'.
Hindenburg Research responded to the statement by Adani Group and said it failed to address 88 questions they had raised in the report.
Hindenburg Research which claimed that it has all the documents needed to prove its charges, also challenged Adani Group to file a lawsuit against them in the USA.
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