Gautam Adani, founder and chairman of Adani Group who had replaced Reliance Industries Limited (RIL) chairman Mukesh Ambani as the richest person in India a year ago lost the tag due to the impact of the Hindenburg research report on the group.
After losing over USD 50 billion in less than 50 days, he is 400 million poorer than Mukesh Ambani.
Ever since the release of the report against Adani Group, Gautam Adani is losing billions of dollars daily due to drop in his companies’ shares.
Currently, the net worth of Adani is USD 84 billion whereas Ambani’s net worth is USD 84.4 billion.
Gautam Adani’s net worth drops despite responding to Hindenburg report
Recently, the Hindenburg research firm released a report raising concerns about shares of Adani Group companies having a possibility of declining from their current levels, owing to high valuations.
Soon after the release of the report, the stocks of companies belonging to the group started falling.
Though, the group responded to allegations and narrative peddled by the firm in a 400-page response, some of the group’s companies are still witnessing sharp sell-off.
Mukesh Ambani climbs on world’s billionaire list
On the world’s billionaire list, Mukesh Ambani climbed to ninth position after Gautam Adani’s net worth dipped by USD 50.2 billion within a span of less than 50 days. Adani’s net worth slid from USD 134.2 billion on December 13, 2022, to USD 84 billion on February 1, 2023, due to the Hindenburg effect.
The shares of Adani Total Gas dipped by over 50 percent in the last five days. Even the shares of NDTV fell by over 15 percent in one week.
Abu Dhabi-based IHC to invest in Adani Enterprises’ FPO
Amid ongoing controversy over the firm report, International Holding Company, an Abu Dhabi-based diversified conglomerate, on Monday announced that it will invest about USD 400 million (AED 1.4 billion) into the Adani Enterprises’ follow-on public offer (FPO) through its subsidiary Green Transmission Investment Holding RSC Limited.
The Adani Group company’s FPO opened for subscription on January 27 and will continue till January 31.
Adani Enterprises had filed a red herring prospectus with the markets regulator Securities and Exchange Board of India (SEBI) for the Rs 20,000 crore follow-on public offer (FPO).