Adani Group Losses Soar To $65 Billion; Hindenburg answers

On Monday, Adani Transmission fell 14.91%, Adani Green 20%, Adani Total Gas 20%, Adani Power 5% and Adani Wilmar 5%.

Shares of Adani Group companies remained under pressure for a third consecutive day on Monday, with the majority of them falling again, The Times of India reported.

According to a Reuters report, the deepening market crisis has now resulted in losses of $65 billion in the group’s stock values.

The current fall round follows a report from Hindenburg Research last week that raised concerns about the company’s leverage and use of tax havens.

The benchmark BSE Sensex pivoted nearly 1,000 points on the day before making a brilliant comeback in late trades on selective buying.

Adani’s losses total $65 billion.

The Adani Group’s protracted rebuttal over the weekend to Hindenburg’s report did little to calm investor sentiment today. The 3-day sell-off has now wiped out a market value of nearly $65 billion amid a stock sale of Adani’s flagship that should underscore the tycoon’s rise on the global stage.

While the Adani group has portrayed Hindenburg’s allegations as unfounded and an attack on India, the latter’s report revives longstanding investor concerns about the conglomerate’s corporate governance.

The saga also threatens to undermine broader confidence in India, which until recently was a top investment target for Wall Street, and hasten an incipient shift towards a reopening of China.

On Monday, Hindenburg Research claimed that “The Adani Group has been trying to balance its meteoric rise and the wealth of its chairman, Gautam Adani, with the success of India itself. We do not agree. To be clear, we believe India is a vibrant democracy and a rising superpower with an exciting future.”

Adani Sale

The sell-off is also rapidly eroding the fortunes of Adani, Asia’s richest man, after his shares have been among the best not only in the local market but also in the broader MSCI Asia Pacific Index over the past year.

From the 4th richest place in the global billionaire rankings to Wednesday last week, Adani has fallen to 8th place according to the Forbes real-time billionaires list with a combined net worth of $88.2 billion. However, the Bloomberg Billionaires Index places Adani at number 7 with a fortune of $92.7 billion.

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