Wealth Of India’s Richest Man, Gautam Adani, Drops Amid Fraud Allegations

India’s richest man, Gautam Adani, has lost 5.17 per cent of his estimated wealth amid fraud and stock manipulation allegations by activist investing company, Hindenburg Research.

Adani’s company, Adani Group, was accused of stock manipulation and accounting fraud for decades and amassing a massive fortune through the capital market in the process.

Hindenburg Research said its conclusion was derived from a two years investigation into the affairs of Adani Group and its sister company, Adani Enterprises.

On Wednesday, Hindenburg said: “Today we reveal the findings of our 2-year investigation, presenting evidence that the INR 17.8 trillion (U.S. $218 billion) Indian conglomerate Adani Group has engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades. 

“Gautam Adani, Founder and Chairman of the Adani Group, has amassed a net worth of roughly $120 billion, adding over $100 billion in the past 3 years largely through stock price appreciation in the group’s 7 key listed companies, which have spiked an average of 819% in that period. 

“Our research involved speaking with dozens of individuals, including former senior executives of the Adani Group, reviewing thousands of documents, and conducting diligence site visits in almost half a dozen countries. 

“Even if you ignore the findings of our investigation and take the financials of Adani Group at face value, its 7 key listed companies have 85% downside purely on a fundamental basis owing to sky-high valuations.” 

Following the report, Adani Group’s stock depreciated by -1.07 per cent at the time of filing this report, as shareholders reacted negatively in the capital market.

Also, the Indian billionaire lost $6.5 billion (N3 trillion when pegged to today’s official market rate of N462), as his net worth fell by –5.17 per cent to $119.1 billion. 

Meanwhile, Adani’s company responded to the allegations, stating that Hidenburg’s statement is “a malicious combination of selective misinformation and stale, baseless, and discredited allegations”.