Gautam Adani lost billions of dollars in the last few days, along with his position as the third wealthiest person, as seven out of nine Adani Group companies’ stocks tanked in trade on Monday, extending Friday’s fall. US-based forensic research firm Hindenburg Research released a scathing report detailing the stock manipulation and accounting fraud undertaken by the Adani Group on Wednesday. Following the release of the report, the Group’s scrips have taken a severe beating on the bourses.
Barring Adani Enterprises, which soared more than 9% to Rs 3,037 on Monday, all other Adani Group company shares traded deep in red. Adani Transmission shares plunged more than 15% on BSE to Rs 1,648 apiece, Adani Green Energy tumbled 16%, Adani Total Gas was down 19%. Adani Wilmar and Adani Power shares tanked 5% to hit the lower circuit.
As a result of the selloff, billions of dollars were wiped off Gautam Adani’s net worth. The billionaire’s cumulative wealth fell by $6 billion on Wednesday and continued its fall on Friday, sinking by $20.8 billion, to $92.7 billion according to the Bloomberg Billionaires List, which now pegs Adani at the seventh position. Prior to the dissemination of the report, Adani boasted of a net worth amounting to $121 billion.
The growth trajectory of the businessman’s net worth over the years remains unparalleled. From $9.8 billion in 2019, his wealth skyrocketed to $33.8 billion in 2021 and Adani ended 2022 with $116 billion, according to Bloomberg. The bulk of Gautum Adani’s riches is tied to the stake he owns in his listed companies. As of September 2022, Adani owned almost 75% of Adani Enterprises, Adani Power and Adani Transmissions according to regulatory filings. Moreover, Adani owns 66% stake in Adani Ports & Special Economic Zone, 61% in Adani Green Energy and 37% in Adani Total Gas.
In a response to Hindenburg Research’s report, the Group threatened to retaliate with legal action against the research firm, stating the “maliciously mischievous, unresearched” report had adversely affected the Group, its shareholders and investors.