Gautam Adani, billionaire and chairman of Adani Group, during an event at the Port of Haifa in Haifa, Israel, on Tuesday, Jan. 31, 2023. Adani, the Indian billionaire whose business empire was rocked by allegations of fraud by short seller Hindenburg Research, said his company will make more investments in Israel.
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Adani stocks continued to see sharp losses during Wednesday’s trading session in Mumbai — even though the conglomerate managed to pull off a win a day earlier.
Adani Enterprises received a vote of confidence from investors on Tuesday, when its $2.5 billion follow-on public offering (FPO) was fully subscribed on the last day.
The sharp declines reflect eroded investor sentiment from a report released by short-selling firm Hindenburg. The Jan. 24 report accused Adani Group companies of “brazen stock manipulation and accounting fraud.”
On Wednesday, Adani Group’s shares fell after days of volatile trading.
Shares of Adani Enterprises plunged by at least 25% on Wednesday afternoon. Adani Port and Special Economic Zone dropped about 20%, Adani Green Energy fell more than 5%, Adani Total Gas lost 10% while Adani Transmission traded 3% lower.
The stock rout that followed the announcement amounted to $84 billion, Reuters reported.
According to Forbes, Gautam Adani, the founder and chairman of the group, has lost his status as Asia’s richest man to Mukesh Ambani, the chairman of Reliance Industries.
Hindenburg, which said it has taken a short position in Adani Group, stands to benefit from the declining value of those stocks.
Adani’s battle with the short-seller firm has put the group’s exposure to Wall Street — amounting to nearly $9 billion, according to JPMorgan — under the spotlight.
How did we get here?
In just one week, Indian billionaire Gautam Adani saw more than $34 billion wiped off his net worth, according to the Bloomberg Billionaires Index.
Here’s a timeline of the major events that led to this.
Jan. 25: Before India’s…
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