Hindenburg effect: Gautam Adani's net worth slips to around $46 bn on massive slide in m-cap, stocks 

KEY HIGHLIGHTS: 

• Gautam Adani's net worth stands at around $46 billion ever since Hindenburg Research's report came out
• Adani Group's combined market cap went down below the $100 billion mark
• Gautam Adani was the third richest person in the world after Bernard Arnault and Elon Musk

 

Billionaire and Adani Group chairman Gautam Adani’s net worth has been in a downward spiral much like the combined market cap of Adani Group and the value of the Group’s stocks ever since the Hindenburg report came out in late January. Adani’s total wealth stands at $46.1 billion and he is in the 27th spot on the global rich list as of February 22, according to the Bloomberg Billionaires’ Index. 

According to Forbes Real-Time Billionaires’ Index, however, the businessman’s wealth slipped down to $46.7 billion and he is on the 25th spot in the global rich list. Meanwhile, Adani Group’s combined market capitalisation slipped below the $100 billion mark amid intensified selloffs on Tuesday. 

Gautam Adani’s net worth stood at around $120 billion before January 24. He was ranked as the third richest person in the world after LVHM’s Bernard Arnault and Twitter CEO Elon Musk. 

The allegations of accounting fraud and stock manipulation levelled by Hindenburg have led to an erosion of $134 billion from Adani Group’s market value. The value erosion in Adani Group stocks is equal to 4.2 per cent of India’s annual GDP and the annual GDP of Angola. Ten Adani Group stocks had a combined m-cap of Rs 8.09 lakh crore or $98 billion as of Tuesday’s close. 

Adani Total Gas lost Rs 3.30 lakh crore in market value and its m-cap stood at Rs 96,656.81 crore on February 21. Adani Enterprises, Adani Transmission, and Adani Green Energy have lost over Rs 2 lakh crore each in market value. Adani Power and Adani Ports and SEZ have also seen a value erosion of around Rs 39,997 crore. 

US-based short seller Hindenburg Research released a report– Adani Group: How the World’s 3rd Richest Man Is Pulling the Largest Con in Corporate History– and accused the group’s companies of “brazen accounting fraud, stock manipulation and money laundering… taking place over the course of decades.” 

Adani Group has categorically denied Hindenburg’s allegations and labelled them as being “malicious”, “baseless” and a “calculated attack on India.”

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