The collapse in Adani companies continues: tens of billions of dollars evaporated
The company’s shares plunged after Credit Suisse’s decision on Adani’s bonds. The Adani Group lost a total of $68 billion.
Adani’s businesses continue to slide into free fall after US short-selling company Hindenburg Enterprises published a report against the holding of Gautam Adani, one of the world’s richest people.
Shares of Gautam Adani’s flagship Adani Enterprises fell 30 percent overall. Swiss bank Credit Suisse has stopped accepting bonds from Adani’s companies as collateral for loans. Shares tumbled on the news.
STUNNING CREDIT SUISSE REPORT
Credit Suisse has restored the loan value of the bonds sold by Adani Ports and Special Economic Zone, Adani Green Energy and Adani Electric, Bloomberg reported.
In the last five trading sessions, Adani’s shares have lost a third of the company’s total value. Adani Enterprises, the holding’s flagship, is down 43 percent so far from its 52-week high. Three other companies in the group, Adani Power, Adani Wilmar and NDTV, all lost 5 percent today alone.
While Gautam Adani’s fortune reached roughly $150 billion over a period, the famous businessman has lost roughly $65 billion since he saw the spike. According to the data, Adani lost $36 billion in January.
Shares of Adani’s public companies began to fall sharply after short selling-focused Hindenburg Research released a report targeting billionaire businessman Gautam Adani.
INFORM COMPANY SHAKE
According to the report prepared on the companies of Gautam Adani, one of the richest people in the world and who added wealth to his fortune in 2022, it is said that Adani used various accounting tricks to inflate the value of the companies in his portfolio.
The report alleges that the Adani Group engaged in stock price manipulation and accounting fraud for decades. Hindenburg submitted a list of 88 questions about the allegations that he “hopes the Adani Group will be happy to answer.”
Shorting that began after the report was followed by declines in inventories. Selling off on Indian stock markets deepened and many Adani companies closed due to losing excessive value. Adani, on the other hand, fell from the third richest person in the world to 11th in a week.
HOW DID ADANI GROW UP?
Adani’s net worth has increased largely due to investments in fossil fuels and renewable energy. The famous billionaire was ahead of businessmen such as Bill Gates and Warren Buffet in the list of the richest people in the world.
The businessman, who began his career as a commodity trader in the 1980s, now owns India’s largest private infrastructure group, with nearly a dozen ports and eight airports. The group has numerous subsidiaries, including media, IT and defense.
While Adani’s companies have been valued at more than 3,300% in the stock market in the last three years, there were plans to increase Adani Enterprises’ stake. Adani, who is the biggest money maker in 2022, is also estimated to be very close to Indian Prime Minister Narendra Modi.