Adani Enterprises, Adani Power, and Adani Green: Gautam Adani slips to 29th place on the list of the richest people as group shares decline
In September 2022, 60-year-old Gautam Adani had a $150 billion net worth. However, the charge against Hindenburg Research shook group shares, reducing his personal wealth by nearly $107 billion.
Gautam Adani has dropped to position 29 on the Bloomberg billionaire list with a $42.7 billion net worth as a result of the daily decline in the value of the Adani Group’s stock. Adani, 60, was undoubtedly worth $150 billion in September 2022. However, the charge against Hindenburg Research shook group shares, reducing his personal wealth by nearly $107 billion.
Around Rs. 11 lakh crore in market capitalization has been lost by Adani group stocks (m-cap). The whole group market capitalization has decreased to below $100 billion from $232 billion as of January 24. Since January 24, the day Hindenburg Research allegedly accused Adani Group companies of fraud and accounting manipulations, three of the Adani group’s shares, including Adani Total Gas, Adani Green, and Adani Transmission, have actually been the biggest losers on the BSE.
Hindenburg Research posed a total of 88 queries in its damning study. According to Adani Group CFO Jugeshinder Singh, 65 of them had to do with publicly traded firms, six with media stories, and the remaining ones were with family offices. A total of 65 questions, according to Singh, a speaker at the Kotak Chasing Growth – 2023 Conference, were not previously disclosed by the company.
Notwithstanding the Adani group’s denial of the short seller’s accusations, the group’s shares have since fallen.
Adani Total Gas shares experienced the biggest decline in the 21 trading sessions, falling by 78.5 percent. On January 24, the stock was trading at Rs 3,885.45; on Wednesday, it was at Rs 834.95. During the same time period, shares of Adani Green Energy and Adani Transmission fell by 71.8% and 71.4%, respectively.
During the recent stock market crash, the group’s leading stock, ancient-share-price-366536 Adani Enterprises, the 30th most valuable stock on the Exchange, is valued at Rs 1,60,153.06 crore. Since January 24, the share’s market value has decreased by 2.32 lakh crore. The second most valuable Adani group stock right now is Adani Ports. Its market capitalization as of Wednesday was Rs 1,18,127.20 crore, ranking 37th on the BSE, down from Rs 1,64,354 crore on January 24. Only these two group stocks have a market capitalization of more than Rs 1 lakh crore.
With a mcap of Rs 4,27,326 crore, Adani Total Gas was the most valuable Adani group company as of January 24. Its market capitalization was Rs 91,828.64 crore as of Wednesday’s closing prices. As of January 24, a total of six Adani stocks had a market value of more than Rs 1 lakh crore.
According to Singh, the gross debt of the firm is $30 billion on a gross basis and $26 billion on a net one. According to him, just $750 million of it is available for ordinary company purposes; borrowing is only permitted for assets. According to him, the group’s leverage has been on the decline, with the ratio of net debt to Ebitda falling from 4.1 to 3.1 times in FY2022. According to him, net debt/Ebitda will stay at 3.1 times even after the company buys Holcim in FY2023. According to Singh, the group is continually reducing its debt and will eventually reach 2.2 times.
