Hindenburg Disaster: Gautam Adani Loses Over Rs 29,000 Crore In One Week, Slips To 11th In Rich List

It's been exactly one week since the Hindenburg research report came out and rattled the Adani Group after accusing it of accounting frauds, stock manipulations, and money laundering. The result of the report is what we can call the Hindenburg Disaster of 2023.

Gautam Adani Loses Rs 29,000 Crore

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The group's chairman Gautam Adani, too has bore the brunt of the bloodbath in his businesses' stocks, and has now fallen out of the world¡¯s top 10 richest to 11th place on Bloomberg¡¯s Billionaires Index, as of Monday¡¯s close. In September last year, Adani had become world's second richest person, only behind Elon Musk at that time.

Adani's net worth has fallen over $36 billion (over Rs 29,000 crore) since the Hindenburg report came out on 24th January last week. He had a networth of $120 billion on 23rd January 2023. Then Hindenburg report came out on 24th January, post which he has now fallen to nearly $84 billion.

Some Adani Group Stocks Show Recovery

Adani Group stocks have continued to bleed heavily ever since the Hindenburg report came out last week. The allegations put forth by the research firm have rattled the market cap of Adani stocks.

Even Adani group's rebuttal of the U.S. short-seller research firm's criticism has failed to pacify investors, and the market rout has been deepening, which has now led to losses of $65 billion in the group's stock values.

But some Adani stocks have shown recovery today. As of this morning (at the time of writing this report), Adani Enterprises has managed to recover a bit and is up over 3%, whereas Adani Green Energy is down 1%, Adani Ports and Special Economic Zone is up over 2%, Adani Power is down nearly 5%, Adani Total Gas is down 10%, Adani Transmission is up over 5%, and Adani Wilmar is down over 5% today.

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Also Read: Meet Nathan Anderson, The Man Behind Hindenburg Report

Investor LIC To Seek 'Clarification' From Adani Group

Life Insurance Corporation (LIC), which is India's largest insurer, is reviewing Adani Group's response to the scathing criticism by a U.S. short-seller Hindenburg research and will hold talks with the group's management within days to seek clarifications, as per Reuters report.

LIC said in a statement it had invested Rs 364.7 billion ($4.47 billion) in Adani companies, about 1% of its assets under management. It added that Adani debt securities held by LIC were rated AA and above, which was in compliance with India's investment regulations for life insurance companies.

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"Presently there is a situation that's emerging and we are not sure what is the factual position.. Since we are a large investor, we have the right to ask relevant questions and we will definitely engage with them," LIC Managing Director Raj Kumar said.

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