After the release of the Hindenburg Research report, Gautam Adani experienced a substantial decrease in wealth, plummeting by more than $80 billion within a month and reaching a low point of $37.7 billion. During a period when his conglomerate lost over $150 billion in market value, Adani dedicated months to reestablishing investor and lender relationships, resolving debts, and addressing regulatory concerns.
It took Gautam Adani a year to rejoin the exclusive club of individuals with fortunes exceeding $100 billion.
The Indian tycoon has managed to recover a significant portion of his wealth after a short-selling attack caused a sharp decline in early 2023.
As of Wednesday, Adani's net worth increased by $2.7 billion to reach $100.7 billion, marking its highest point since Hindenburg Research accused his Adani Group of "brazen" market manipulation and fraud—allegations the Adani Group refuted.
Shares of his flagship company, Adani Enterprises Ltd., have risen for eight consecutive days, following an earnings report last week that revealed a 130% surge in profit. He currently holds the 12th position among the world's richest individuals, just one spot behind his compatriot Mukesh Ambani, according to the Bloomberg Billionaires Index.
While Ambani's fortune achieved a record high earlier this month, Adani's is still approximately $50 billion below its peak in 2022. Adani's wealth experienced a significant decline of over $80 billion in the month following the report, hitting a low of $37.7 billion. His conglomerate, which at one point lost over $150 billion in market value, dedicated several months to regaining investor and lender trust, settling debts, and addressing regulatory concerns.
Rajiv Jain's GQG Partners LLC invested about $4 billion in Adani Group companies last year, with the Qatar Investment Authority contributing nearly $500 million and TotalEnergies SE investing $300 million in a joint venture with Adani Green Energy Ltd., the conglomerate's green arm. Discussions this week suggest that Adani Green is in talks to raise approximately $500 million through dollar bonds, marking its first overseas issuance since the Hindenburg report.
In January, the Supreme Court of India directed the local markets regulator to conclude an investigation into the group within three months, stating that no further probes were necessary. This decision contributed to boosting shares of Adani Enterprises.
Adani's resurgence, reflective of the broader increase in wealth in India, coincides with global investors turning their attention to the nation, supporting the growth of stocks. Major banks like Goldman Sachs Group Inc. and Morgan Stanley have identified India as a prime investment destination for the next decade.
Gautam Adani, aged 61, initially entered Mumbai's diamond industry in the early 1980s after dropping out of college, later diversifying his empire into various sectors, including airports, data centers, media, and green energy—aligning with Prime Minister Narendra Modi's vision for India's long-term economic goals. At its peak, Adani's fortune reached $150 billion, securing his position as the world's third-richest person.
After experiencing the most significant wealth loss in 2023, Adani has managed to reclaim $16.4 billion this year, marking one of the most substantial rebounds among the super-rich tracked by Bloomberg.
