The value of India’s richest man’s companies fell by $72 billion in 3 days
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Shares of companies of the Indian industrial conglomerate Adani Group continued to fall on Monday, January 30. According to Bloomberg estimates, after three days of mass sales, the total capitalization of the companies of the Indian holding, headed by the Indian billionaire Gautam Adana, the richest man in Asia, fell by almost $72 billion.
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What is happening with shares
The sell-off in bonds began against the background of the January 24 publication of a report by the American research company Hindenburg Research, which accused the Adani Group of numerous financial violations.
According to the company’s analysts, the report was the result of a two-year investigation of stock manipulation and violations in the field of accounting. The publication of the report coincided with Adani Enterprises’ 200 billion rupee ($2.5 billion) initial public offering (FPO), which was to become the largest in Indian history. According to Reuters, the acceptance of applications for the purchase of new shares will end on Tuesday, January 31.
Read also: The richest man in Asia lost more than $50 billion in two days
The Adani Group said that the Hindenburg Research report is a “combination of selective disinformation and outdated, baseless, and discredited assertions that have been verified and rejected by India’s highest courts.” The group is studying the possibility of filing a lawsuit against the New York company to protect its interests.
Company statement
On Sunday, Adani Group said it complies with all local laws and provides all necessary regulatory information to regulatory authorities. The company published a 413-page rebuttal of the report by the American Hindenburg Research.
In particular, the company noted that the answers to 65 of the 88 questions raised by Hindenburg Research were given by Adani companies in annual reports available on their websites. Of the remaining 23 claims, 18 relate to public shareholders and third parties (and not to Adani’s portfolio companies), and the remaining five are baseless allegations based on unverified facts, the conglomerate said in a statement.
Stock reaction
On Monday, January 30, on the National Stock Exchange of India (NSE), shares of Adani Transmission fell by 15.2%, Adani Total Gas — by 20%, Adani Green Energy — by 20%, Adani Power — by 5%, Adani Wilmar — by 5%.
Adani Ports and Special Economic Zone bond trading closed with virtually no change in quotations. Adani Enterprises shares rose 4.8%. Due to the fall in the capitalization of the companies of the conglomerate Adani Group, the fortune of Indian billionaire Gautam Adana fell by $20.8 billion overnight, according to Bloomberg.
Author: 
News feed editor Anna Nedogybchenko. She writes on the following topics: Finance, banks, economy, investments
- Investments
- Shares (securities)
Source: Ministry of Finance
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