Most Adani stocks continue their bloodbath as Asia’s richest man loses $28 billion in a month

Gautam Adani, chairman of Indian conglomerate Adani Group, at the World Congress of Accountants in Mumbai on November 19, 2022. Founder Gautam Adani, Asia’s richest man and once second only to Elon Musk, fell into the top five of the world’s richest ranked seventh in Bloomberg’s Billionaire Index.

Indranil Mukherjee AFP | Getty Images

Shares of most Adani Group companies continued to post steep losses for a third consecutive trading session as the company tried to refute a report by short-selling firm Hindenburg, which accused the conglomerate of market manipulation. actions and “accounting fraud”.

Adani Enterprises erased earlier gains of up to 10% and last traded flat in Mumbai afternoon trade after the group released a 400-plus-page long response to the report. Hindenburg over the weekend, saying he would exercise his rights to “pursue remedies” to protect his investors “before all competent authorities.”

Adani Enterprises’ share price remains more than 25% lower since the start of the month, according to data from Refinitiv. It carried out a secondary stock sale worth $2.5 billion, which was overshadowed by a rout that wiped out a total of $48 billion at last week’s close.

Founder Gautam Adani, Asia’s richest man and once second only to Elon Musk, has fallen from the world’s five richest to seventh in Bloomberg’s Billionaires Index.

His net worth has fallen by $27.9 billion since the start of the year, according to the index. It peaked at $150 billion on September 20, 2022, before falling to $92.7 billion at last week’s close, according to the index.

Despite small gains seen in Adani Enterprises, other Adani Group subsidiaries continued to dive.

“Attack on India”

Adani Group said Hindenburg’s allegations were a “calculated attack on India, the independence, integrity and quality of Indian institutions, and India’s history of growth and ambition”, in the answer published this weekend.

The group’s chief financial officer, Jugeshinder Singh, said in an interview with CNBC-TV18, a CNBC affiliate, that Adani Enterprises’ value hasn’t changed “simply because” of share price volatility. , adding that it lies rather in its “ability to incubate new businesses.”

He added that he was confident Adani EnterprisesThe follow-up public offering will be fully subscribed, calling Hindenburg’s report “simply a lie” and the timing of the report “malicious.”

Hindenburg on Monday morning described the group’s response as “inflated” and said it was “ignoring all the key allegations” against the conglomerate that it had raised.

“Fraud cannot be obscured by the nationalism of an inflated response that ignores all the key allegations we have raised,” the short seller captioned in his response to the Adani Group.

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