Gautam Adani’s Fortune Dips by $78 Billion Following Legal and Market Setbacks
New Delhi(The Uttam Hindu): As of the close of trading on Friday, Gautam Adani's net worth was reported at $71.3 billion, according to the Bloomberg Billionaires Index. This marks a staggering decline of $78.6 billion from his peak net worth in 2022. Once ranked as the fourth-richest person in the world, Adani's fortune has taken a massive hit, shrinking by $14.2 billion over just two trading sessions. This dramatic drop in wealth has erased all of his gains made earlier this year and left his net worth significantly lower than the nearly $150 billion it stood at in September 2022.
The sharp drop in Adani Group stocks was sparked by a series of negative developments. Despite some recovery in most of the group’s stocks from Thursday’s selloff, four of them continued to close lower on Friday. Adani Green Energy, which had already fallen 19% the previous day, dropped another 8.2%. Similarly, Adani Energy Solutions saw a 7% decline on Friday, compounding its two-day loss to 26%. Other group stocks such as Adani Power and Adani Wilmar also lost value. By the close of trading, the Adani Group's total market valuation stood at $141.3 billion, down $1.3 billion from the previous day, with a total market cap erosion of $28 billion over the past two sessions.
The drop in Adani Group stocks follows a legal charge against Gautam Adani by US prosecutors over allegations of his involvement in a years-long scheme to bribe Indian officials for securing solar energy contracts worth $265 million (around Rs 2,200 crore). The Adani Group has denied these allegations, calling them unfounded, and has announced plans to pursue legal action.
Additionally, S&P Global Ratings downgraded the outlook for three Adani Group entities to 'negative' from 'stable,' citing concerns over potential risks to funding due to the US indictment. The rating agency noted that if the allegations were substantiated, the group's cash flow could face significant challenges. These developments come at a time when the Adani Group had been recovering from the fallout of the Hindenburg Research report published in January 2023. Prior to the report, the group’s valuation had peaked at nearly $290 billion.
