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    $7 billion gone in a day! Gautam Adani sees heavy wealth erosion after shares tank up to 10%

    Synopsis

    Shares of all the 10 Adani Group stocks, including the recent acquisition NDTV, were trading lower after Hindenburg revealed that it has been short-selling Adani Group companies through US-traded bonds and non-Indian-traded derivatives, along with other non-Indian-traded reference securities.

    Hindenburg report is timed to damage our FPO: Adani Group slams research report
    NEW DELHI: Billionaire Gautam Adani's personal wealth saw an erosion of up to $7 billion during the day after the conglomerate shares dropped up to 10% on Wednesday following a negative report by American short-selling firm Hindenburg Research.

    The 60-year-old Ahmedabad-based businessman's wealth dropped $7 billion to $119.5 billion today, according to Forbes Real-Time Billionaires List. Adani remains the world's third richest person, ahead of Jeff Bezos ($119.5 billion) and Warren Buffett ($108.1 billion).

    The only other Indian in the top 10 list is also a Gujarati - Mukesh Ambani (85.8 billion).

    Shares of all the 10 Adani Group stocks, including the recent acquisition NDTV, were trading lower after Hindenburg revealed that it has been short-selling Adani Group companies through US-traded bonds and non-Indian-traded derivatives, along with other non-Indian-traded reference securities.

    Among Adani Group stocks, Ambuja Cements was the top loser as it slipped up to 9.6% to Rs 450.75. ACC, Adani Ports, Adani Power, and Adani Transmission lost at least 5% each.

    In a report, the firm raised red flags over accounting and corporate governance issues. "For example, Adani Enterprises has had 5 chief financial officers over the course of 8 years, a key red flag indicating potential accounting issues," it said.

    Also read: Hindenburg says it holds short positions in India's Adani, flags risks

    Adani Group is yet to issue an official statement on the allegations made in the report, which is timed just ahead of the launch of Adani Enterprises' Rs 20,000 crore follow-on public offer (FPO) on Friday. The FPO, which is priced at a discount to the current market price, would be the largest one ever in India.

    Earlier in August 2022, CreditSights, a fixed-income research firm owned by financial services firm Fitch Group, had flagged concerns over the Group's debt which had risen to Rs 2.2 trillion in FY22-end.

    Shares of Adani Enterprises surged 125% in 2022, while other group companies, including power and gas units, rose over 100%. Despite the meteoric rise in Adani Group shares over the last few years, most of the counters hardly find any analyst coverage.

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