The Adani Group has denied Hindenburg’s allegations, including that the Adani Group is attracting investors by inflating the value of its companies. Gautam Adani responded that the crises are temporary and Adani Enterprises will grow well. But investors are concerned about the group’s ability to restructure the debts of highly indebted companies and maintain growth momentum. The failure of the group to provide a proper explanation to the shareholders is the reason for the loss of assets in a single month.
The sharp fall in Gautam Adani’s net worth was due to the drop in shares of Adani group companies. The value of companies like Adani Total Gas, Adani Transmission, Adani Green Energy has fallen by more than 70 percent. Ten listed stocks in his group have lost more than Rs 11 lakh crore. Prior to the Hindenburg report, Adani Total Gas and Adani Transmission were among the 25 most valued stocks on the exchanges. But both stocks have fallen more than 70 percent since January 24.
The combined market value of Adani’s 10 listed companies, which stood at Rs 8.2 lakh crore on Tuesday, is now less than that of HDFC, reports suggest. As on January 24, Adani Group’s 10 listed companies had a market capitalization of over Rs 19 lakh crore. It was more than Mukesh Ambani’s Reliance Industries Ltd. It was this market value that was lost following the Hindenburg Report. Mukesh Ambani is currently at the eighth position in the list of the world’s richest people. The assets are now 8,600 crore dollars.