Adani Group companies lost almost half of their total market value
The devastating Hindenburg report led to a collapse in the value of the group’s shares. Analysts fear that this will negatively affect the entire financial system of India.
Market losses of the Indian Adani Group, caused by the critical report of Hindenburg Research, exceeded 100 billion dollars. This was reported on February 2 by Reuters.
It is noted that the day before, the owner of the group, Gautam Adani, canceled the sale of shares in the flagship company Adani Enterprises Ltd. by $2.5 billion, further exacerbating the situation on the market.
Shares of Adani Enterprises fell 27% on Thursday, closing at their lowest level since March 2022. Other companies of the group also lost their positions by 7-10%.
“Since the Hindenburg report, Adani Group companies have lost almost half of their combined market value. Adani Enterprises, which has been described as Adani’s business incubator, has lost $26 billion in market capitalization,” the agency wrote.
The sharp fall in Adani’s stock raised concerns about the likelihood of a wider impact on India’s financial system.
Adani’s net worth has almost halved in a week to $64.6 billion. The businessman is no longer the richest person in Asia, dropping to 16th place in the Forbes billionaires ranking.
Recall, on January 24, Hindenburg Research published a report on the results of a two-year investigation into the numerous abuses of the tycoon’s companies.
It states that the Adani Group “has been engaged in a brazen stock manipulation scheme and accounting fraud for decades.”
Earlier it was reported that in 2022 the fortune of Russian oligarch Roman Abramovich decreased by more than 50%, to $7.8 billion.
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