The problem for India’s billionaire businessman, Gautam Adani, doesn’t appear to be over his business empire encountered another day of bloodbath in the stock market. Adani Enterprises’ share value plummeted by a whopping 26.70%, making Gautam Adani poorer by another $22 billion in personal fortune. The fresh development came just hours after Adani announced that he had decided to call off $2.4 billion equity fundraising.
With today’s extraordinary losses, Adani has been dislodged to the 16th position in the global rich list. He was the world’s third richest person only a week ago.
Last night, Adani said why he had decided to call off $2.4 billion equity fundraising.
“The Board takes this opportunity to thank all the investors for your support and commitment to our FPO. The subscription for the FPO closed successfully yesterday. Despite the volatility in the stock over the last week, your faith and belief in the Company, its business and its management has been extremely reassuring and humbling,” he had said in a statement.
Adani has been a close friend of Prime Minister Narendra Modi.
The downfall of the Adani Group was triggered byby an investigative report by US-based Hindenburg Research, which raised serious questions on the company’s debt levels and the use of tax havens in Mauritius, Caribbean Island and Singapore among others.
Titled as ‘How The World’s 3rd Richest Man Is Pulling The Largest Con In Corporate History’, the two-year-long investigation by Hindenburg Research was published just two days before the Adani Group was planning to start a huge stock market fundraising drive. Adani was accused of ‘brazen stock manipulation’, ‘accounting fraud’ and ‘money laundering.’
Reacting to the report, the Adani Group had said, “We are deeply disturbed by this intentional and reckless attempt by a foreign entity to mislead the investor community and the general public, undermine the goodwill and reputation of the Adani Group and its leaders, and sabotage the FPO (Follow-on Public Offering) from Adani Enterprises.”