- Adani Enterprises lost 48 billion dollars from the massive sale of the shares of all its companies.
- The group is led by Indian billionaire Gautam Adani, who went from third to seventh place in the ranking of the world’s richest people.
- The lethal blow was dealt by an American consulting firm specializing in the “short sale” of shares published a lapidary financial report of the group.
India’s Adani Enterprises shares tumbled on Friday, January 27, after the release of a harsh report from a US stock short-selling specialist.
It wasn’t a normal drop, Adani’s shares plummeted so much that the holding companies are estimated to have lost $48 billion in value.
Indeed, the seven publicly traded companies of the Adani holding, controlled by one of the richest men in the world, Gautam Adanilost market capitalization in the 24 hours following the release of the report Hindenburg Research.
The report talks about high levels of indebtedness and the misuse of tax havens by Adani.
The financial data headlines hit shares of Adani Enterprises, the holding company’s flagship, hard.
A report from SMC Global Securities released on Friday says there was an “extreme sell-off” in AdaniGroup shares due to the impact of “general investor sentiment in the market.”
The Group said it is “worried” about the drop in its share values, but continues to wait and see what happens until January 31, Reuters has learned.
In parallel, India’s capital markets regulator is studying the Hindenburg Research report and may use it in its own investigation into Adani.
The full report about Adani of Hindenburg.
Adani, the new Asian giant in trouble
Adani Group, for its part, says the Hindenburg report is “baseless” and that it is considering legal action against the New York-based firm.
With a net worth of $96.8 billion, billionaire Adani is now the seventh richest man in the world, according to Forbes’ ranking.
Two days ago, before the report on its companies, it was in third position.
The billionaire hails from the western Indian state of Gujarat, the home state of Prime Minister Narendra Modi.
The main opposition party in the Indian congress has frequently accused Adani and other millionaires of receiving favorable political treatment by the Modi administration, something the billionaire has consistently denied.
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