Losing 108 billion in one day
Jan 24, 2023
Adani Enterprises, Gautam Adani's diversified conglomerate, loses $108 billion in market capitalization after investment firm Hindenburg Research publishes a report accusing it of stock manipulation and accounting fraud.
Adani himself, then the third richest man in the world after Elon Musk and Jeff Bezos, lost up to $80 billion of his personal fortune. But his comeback was impressive. A year later, he is again the richest man in Asia and the 12th richest in the world, with a fortune of $97.6 billion, according to CNN.
A year ago, Hindenburg published a report that was the result of a two-year investigation into Adani. The US short seller questioned the group's companies' “unconscionable valuations” and claimed their “significant debts” put the entire group in a precarious financial position.
Adani Group published a 400-page response, in which he said the Hindenburg analysis was “nothing but a lie”. But this did not prevent its stock market collapse. Adani's personal fortune has been hit hard by the stock's plunge.
But of late, the group's shares have rallied after India's top court ordered authorities to close an investigation into the group.
Today, Adani's shares have recovered to a market capitalization of more than 90 billion from last year's lows, although they remain about $60 billion below the highs they hit before the Hindenburg report.
“Truth prevailed,” Adani said, speaking of the court order and promised to “continue his humble contribution to India's development story”.
Kidnappings and terrorist attacks
Born in 1962 (one of eight children) he grew up in the western state of Gujarat. His father was a textile merchant.
However, the then-young Adani had other dreams for his future. When he came of age he enrolled at the local university, but dropped out after just one year.
At that time he was “won over” by the alluring idea of diamonds, as a result of which he moved to Bombay and worked as a gem sorter.
It was a branch in which he was quite inclined and did very well. So it didn't take him long to start his own business, Adani Enterprises, which was active in import and export.
The profits of this initiative, he used as loans and guarantees, in order to enter other lucrative businesses. branches of the economy.
In 1998, the then desperate businessman had denounced the attempt to kidnap him by a group of unknown men.
He had claimed that while he and his friend, Shantilal Patel, were traveling on New Year's Day, a scooter hit them. the street, allowing a group of armed men to kidnap them.
The attackers reportedly demanded a ransom of 2 million dollars from the family of the abductees. Both were released after meeting the kidnappers' demands.
“Two or three very unfortunate incidents happened in my life. This was one of them,” Adani had said a few years ago, speaking to the Financial Times.
Another unpleasant incident took place in 2008, during the terrorist attacks in Mumbai. Ten heavily armed extremists from Pakistan had managed to kill 166 people and hold the city hostage for 60 hours.
Adani was dining at the luxury Taj Mahal hotel when the attack began. He could see the dramatic developments from the table where he was eating.
After hiding in a basement, with the help of the hotel staff, he later found refuge in a room on the top floor of the building, where he remained throughout during the bloody night.
When the attackers broke into the hotel the next day, he declared that he “saw death at a distance” of a few meters.
“One of the lives that were saved that night was mine. I still remember some of the faces – people I will never meet, people I could never thank.”