Significant Change after Hindenburg Report
After a significant decline in the value of Adani Group equities, billionaire Gautam Adani is no longer the richest Indian in the world. According to the Forbes Real-time Billionaires list, Mukesh Ambani surpassed businessman Gautam Adani and became the wealthiest Indian in the world. Mukesh Ambani was the richest Indian earlier for a long time before the Adani storm hit the Indian market, and the Adani companies started to grow all of a sudden.
Hindenburg Report and The Sudden Fall in Adani Shares
Gautam Adani has been on a fast slide in the list of billionaires after the release of the Hindenburg research. He was once the richest man in Asia, but he is no longer listed among the top 25 richest people in the world. Adani’s net worth plummeted to less than $45 billion. His current net worth was estimated by the Forbes Real-Time Billionaire List to be $43.4 billion, but according to the Bloomberg Billionaires Index, it has dropped to $42.7 billion.
Since the publication of the research report accusing Adani of performing the “biggest scam in corporate history,” there has been a significant wipeout of over $75 billion in value. After the Hindenburg report was released on January 24, the Adani group of firms’ market capitalization decreased by around $142 billion. The 60-year-old Indian businessman attempting to assuage investors worried about the group’s access to financing has repeatedly refuted claims of stock manipulation and unlawful use of tax havens. He has also reduced spending and repaid debt.
According to the study, an unregistered person edited one Wikipedia entry on Adani but left Satyam Trivedi’s contributions unaltered. Adani group online later removed the conflict of interest warning posted to the article’s top. The Adani Group’s declarations and guarantees to investors have been unable to stem the stock market’s decline. Although Hindenburg criticized the company for leveraging nationalism to get away with fraud, the firm also attempted to make the Adani stock sell-off resemble the Jallianwala Bagh catastrophe.
In a week of intense selling spurred by charges by US Hindenburg Research that the conglomerate is participating in a “brazen stock manipulation and accounting fraud scheme,” Adani has lost roughly US$115 billion from its listed firms, or well over half its value. In a thorough 413-page rebuttal, Adani, a ports-to-power corporation that owns the Queensland-based Carmichael coal and rail project, has refuted the accusations.
Impact on the Common Man
Many have taken to the streets to call for an investigation into fraud allegations straining the country’s overall market due to the crisis surrounding the troubled Indian conglomerate Adani Group. Some economists claim this would lead to a long-term economic crisis and a financial burden on the common man.