Adani Group has been making headlines for several days due to a report released by firm Hindenburg Research, hurting Gautam Adani’s net worth.
The saga between Adani Group and firm Hindenburg Research has intensified over the last few days, with the controversial report causing major financial drawbacks for Indian industrialist Gautam Adani, whose net worth can be seen struggling due to the report.
Hindenburg Research, which is a New York-based investor research company, released a report regarding Adani Group saying that the company has been indulging in “brazen stock manipulation and accounting fraud scheme over the course of decades”.
Gautam Adani, who had made his way to the top and become the richest person in India, has taken a major financial hit due to the Hindenburg report. After the controversial report, the industrialist has slipped to the 22nd spot in the Forbes Real-time billionaire list for 2023.
How did Hindenburg report impact Gautam Adani’s wealth?
In the last few days of January, firm Hindenburg Research released a report which slammed some of the financial decisions made by the Adani Group. The firm said that some of the companies in the Adani conglomerate had “substantial debt” which has put the entire group on a “precarious financial footing”.
The Hindenburg report was released at a crucial time for the Adani Group, just a few days ahead of a Rs 20,000 crore (USD 2.5 billion) follow-on public offer (FPO) by the group’s flagship company Adani Enterprises.
Due to the uproar caused by the Hindenburg report on the Adani Group, the Gautam Adani-led company decided to back out from the Rs 20,000 crore FPO from Adani Enterprises, saying that it would refund the money to all the investors.
The entire saga has taken a major toll on Gautam Adani, as the shares of some of the companies under the Adani Group fell steeply. Though the stock prices eventually recovered, the seven listed firms in the Hindenburg report have still lost about half of their market value, as per Reuters reports.
According to media reports, the combined market value of the listed Adani firms now stands at USD 108 billion, falling steeply from its previous USD 218 billion before the Hindenburg report was published.
Soon after the Adani Group companies lost a large chunk of their market value, Gautam Adani, who has been India’s richest man for over one year, lost the title as he fell out of the top 20 richest people in the entire world, slipping to the 22nd spot.
Gautam Adani’s net worth stood at USD 124 billion on January 17 and fell steeply after the Hindenburg report was released. On Friday, February 3, the industrialist’s net worth stood at USD 61.3 billion, according to Bloomberg Billionaire Index.
READ | Revealed: How much SBI's money is exposed to crisis-hit Adani Group
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 "DNA Explainer: Why is Gautam Adani not the richest Indian anymore? Know Hindenburg’s impact on net worth")
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