Big shock to Indian billionaire Gautam Adani: He lost 10.8 billion dollars in one day

The shares of Indian businessman Gautam Adani, the third richest person in the world, crashed. The hard losses came after an investment firm called Hindenburg shorted Adani shares, publishing a report alleging that the group was growing fraudulently.

Shares in Adani’s publicly traded companies are at 10.8 billion, after short selling-focused Hindenburg Research published a report targeting billionaire businessman Gautam Adani. dollar lost value.

Gautam Adani, the third richest person in the world, was shaken by a report yesterday by Hindenburg Research, a short selling investment firm. The report accused Adani of using various accounting tricks to inflate the value of her portfolio companies, while Adani’s companies fell in hard sales.

The report alleged that Adani Group engaged in stock price manipulation and accounting fraud for decades. Hindenburg submitted a list of 88 questions regarding the allegations that “he hopes the Adani Group will be happy to answer”.

THEY REJECT THE CLAIMS

Jugeshinder Singh, chief financial officer of Adani Group, described the report as “a malicious combination of misinformation and stale, baseless and discredited claims” and dismissed the allegations.

Hindenburg is also a member of Adani Group companies.USAHe said he took a short selling position (investment to decrease the value of the company) in .

ADANI COMPANIES LOSE HARD VALUE

Following the report, Adani Enterprises (ADEL) holding, the flagship of Adani’s companies, lost 1.1 percent in Mumbai, while the group’s port and shipping arm lost more than 6 percent.

Shares of the seven listed Adani Group companies fell by more than 5 percent on average. With these decreases, the total loss of Adani Group shares reached approximately 875 billion rupees ($ 10.8 billion).

HOW DID ADANI GROW?

Adani’s net worth is estimated at around $118 billion, largely due to investments in fossil fuels and renewable energy. The famous billionaire already has more wealth than business people like Bill Gates and Warren Buffet.

The businessman, who started his career as a commodity trader in the 1980s, now owns India’s largest private infrastructure group, with nearly a dozen ports and eight airports. The group has numerous subsidiaries, including media, IT and defence.

While Adani companies have been valued by more than 3,300% in the stock market in the last three years, it was planned to increase the share of Adani Enterprises. It is estimated that Adani, who is the biggest moneymaker in 2022, is also very close to Indian Prime Minister Narendra Modi.