India’s once richest person Gautam Adani, has dropped to number seven on the Bloomberg rich list, just a month into 2023.
The billionaire reportedly lost over $20 billion on Friday, after Hindenburg Research released a report last Tuesday titled “how the world’s 3rd richest man is pulling the largest con in corporate history.”
Hindenburg Research accused Adani Group of “brazen stock manipulation and accounting fraud scheme” at the company.
The company’s shares crashed in response, and lost over $50 billion in market value from Wednesday through Friday, as per Bloomberg reports.
His wealth comes from his stakes in the companies, and he too, saw his net worth collapse by $20.8 billion on Friday. However, he is still one of the world’s richest Indians with a total wealth value of $92.7 billion as of January 30.
According to Bloomberg, this is the largest ever hit to the Indian billionaire’s wealth and the steepest ever market-driven decline for anyone in Asia.
Adani hits back at Hindenburg Research
Hindenburg’s report came at a time when the group was offering a secondary share sale of Adani Enterprises, whose sale closes Tuesday.
The group hit back at the New York-based company, calling the report “maliciously mischievous, unresearched,” and a “calculated attack” on India.
The company said on Thursday that it was exploring legal action. On Sunday, The company also issued a 413-page report against Hindenburg Research, saying its report is “nothing but a lie.”
“This is not merely an unwarranted attack on any specific company but a calculated attack on India, the independence, integrity and quality of Indian institutions, and the growth story and ambition of India,” the company said.
Hinderburg Research hits back at Adani, again
On Sunday, Hindenburg hit back at Adani Group by stating that the conglomerate failed to answer most of the questions the research company had asked.
He had “predictably tried to lead the focus away from substantive issues and instead stoked a nationalist narrative” and tried to combine Adani’s rise with the success of India itself.
“To be clear, we believe India is a vibrant democracy and an emerging superpower with an exciting future,” Hindenburg said in its strongly worded statement. “We also believe India’s future is being held back by the Adani Group, which has draped itself in the Indian flag while systematically looting the nation.”
Hindenburg further added that “fraud is fraud, even when it’s perpetrated by one of the wealthiest individuals in the world.”
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