Indian billionaire Gautam Adani’s dream run up the global wealth rankings is faltering after a media report raising questions about some offshore investors triggered a rout in his conglomerate’s six listed stocks.
The 58-year-old tycoon lost more money this week than anyone else in the world, with his personal fortune tumbling by about $9 billion (Rs124 billion) to $67.6 billion (about Rs933 billion), according to the Bloomberg Billionaires Index based on Wednesday closing prices, reports The Free Press Journal from India.
Just days ago, he was closing the gap with Mukesh Ambani as Asia’s richest man. Adani Group stocks continued to fall on Thursday.
Shares in companies controlled by Indian billionaire Gautam Adani fell again on Wednesday, adding to their losses stemming from a media report that said accounts of three foreign investor funds that own stocks had been frozen.
The companies involved had rejected the report earlier this week, calling it "blatantly erroneous."
Adani Enterprises, Adani Green Energy, and Adani Ports and Special Economic Zone fell as much as 3.3% to 4.7% on Wednesday, while shares of Adani Total Gas, Adani Transmission and Adani Power hit their lower circuit limits.
The Economic Times newspaper had reported on Monday that the National Securities Depository Ltd (NSDL) had frozen accounts of three foreign funds that are among the top foreign investors in Adani Group stocks. The companies lost more than $6 billion in market capitalisation following the report.
However, the NSDL on Tuesday clarified that the accounts of the foreign funds remained active.
The bulk of the holdings of Albula Investment Fund, Cresta Fund and APMS Investment Fund — about $6bn — are shares of Adani’s firms.
Though the Adani group called the report “blatantly erroneous” and said it was “done to deliberately mislead the investing community”, investors concerned about transparency rushed for the exit.
The Mauritius offshore funds hold more than 90% of their assets under management in Adani group companies, according to Bloomberg Intelligence.
In the past year, a broad surge in Adani Group companies have made Gautam Adani the second richest Indian, behind Mukesh Ambani, chairman and managing director of oil-to-telecom conglomerate Reliance Industries.
