Adani Group losses swell to $65 billion despite 413-page rebuttal to fraud allegations

Adani Group losses swell to $65 billion despite 413-page rebuttal to fraud allegations

Gautam Adani has now fallen to No. 7 and No. 8 in the Bloomberg and Forbes Billionaires Indices, respectively

January 30, 2023
Shares of most Adani firms took a nosedive on Monday as the group continues to suffer fallout from fraud allegations, with stock losses reportedly hitting a staggering $65 billion.
Last week, New York-based Hindenburg Research published a damning report that accused the Indian conglomerate of artificially boosting the share prices of its firms by using shell companies linked to Adani family members — including founder and chairman Gautam Adani’s older brother, Vinod Adani — in “tax havens,” such as Mauritius, Cyprus and several Caribbean islands. This operation allegedly ran for decades, resulting in a collective overvaluation by more than 85% on India’s stock market.

Many of the Vinod Adani-associated entities have no obvious signs of operations, including no reported employees, no independent addresses or phone numbers and no meaningful online presence. Despite this, they have collectively moved billions of dollars into Indian Adani publicly listed and private entities, often without required disclosure of the related party nature of the deals.”

The group’s 413-page rebuttal late Sunday did little to pacify investors. 
On Monday, Adani Transmission dropped 14.91%, Adani Green Energy by 20%, Adani Total Gas by 20%, Adani Power by 5% and Adani Wilmar by 5%; flagship Adani Enterprises, however, climbed 4.21% after its follow on public offer (FPO) was subscribed 2%, as per the Times of India.
Subscribe to
NextShark's Newsletter

A daily dose of Asian America's essential stories, in under 5 minutes.

Get our collection of Asian America's most essential stories to your inbox daily for free.

Unsure? Check out our Newsletter Archive.

Losses in the group’s stock value hit $65 billion, according to Reuters. 
The steep losses mark a stark contrast to the dramatic rise of Gautam Adani, who saw more than 1,500% gains in some of his group stocks in the last three years.
The college dropout, who once became the world’s second richest man, has now fallen to No. 7 and No. 8 in the Bloomberg and Forbes Billionaires Indices, respectively. However, he remains Asia’s richest person with a net worth sitting at approximately $88.2 billion (Forbes) to $92.7 billion (Bloomberg).
In its rebuttal, Adani Group called the Hindenburg report “a malicious combination of selective misinformation and concealed facts relating to baseless and discredited allegations to drive an ulterior motive.” 
In another statement, it said it is “evaluating the relevant provisions under U.S. and Indian laws for remedial and punitive action against Hindenburg Research.”
Hindenburg, for its part, has welcomed the challenge.
“We fully stand by our report and believe any legal action taken against us would be meritless,” said the financial research firm, which previously went after hedge fund Platinum Partners, electric truckmaker Nikola Corporation and social media giant Twitter.
“If Adani is serious, it should also file suit in the U.S. where we operate. We have a long list of documents we would demand in a legal discovery process,” Hindenburg added.
      Carl Samson

      Carl Samson is a Senior Editor for NextShark




      Many people might not know this, but NextShark is a small media startup that runs on no outside funding or loans, and with no paywalls or subscription fees, we rely on help from our community and readers like you.

      Everything you see today is built by Asians, for Asians to help amplify our voices globally and support each other. However, we still face many difficulties in our industry because of our commitment to accessible and informational Asian news coverage.

      We hope you consider making a contribution to NextShark so we can continue to provide you quality journalism that informs, educates, and inspires the Asian community. Even a $1 contribution goes a long way. Thank you for supporting NextShark and our community.

      © 2023 NextShark, Inc. All rights reserved.