Gautam Adani has fought his way back into the list of the world’s top billionaires

Gautam Adani has found his way back into the top 20 billionaires in the world list as his conglomerate bounces back after weeks of stock market distress.

The Adani Group chairman, whose net worth rose by $4.38 billion to $64.2 billion this week, is now 18th on the Bloomberg Billionaires’ Index. As of September 2022, he was the second richest person in the world on the list with a net worth of $154 billion.

Then, in January of this year, US-based Hindenburg Research alleged “brazen stock manipulation” and “accounting fraud” by the group. In the months that followed, investors dumped shares in the Adani Group, resulting in a $56.4 billion loss of his personal wealth.

However, shares of Adani Enterprises, the group’s flagship company, are up 34% this week. Shares in recent acquisitions Ambuja Cements and ACC are up 5% and 3.5%, respectively. Its crown jewel, Adani Ports, is up nearly 9%; Adani Wilmar, another group company, was up just over 20%.

Today (May 25), the total market cap of Adani Group’s 10 stocks stands at $126 billion, up nearly $13 billion over the week. However, that’s still well below the peak of $232 billion on Jan. 24, the day Hindenburg published his report.

What Caused Adani Stock Prices to Rise?

The rally in share prices began earlier this week after the Supreme Court-appointed panel found in its 173-page report that there had been “no apparent pattern of manipulation” by the group that could be attributed to “a single entity or group of companies.” affiliated entities.”

The Securities and Exchanges Board of India is still reviewing Hindenburg’s allegations, but the market appears to have taken the Supreme Court’s recent observation as a clear sign for Adani.

A new impetus for Adani’s fundraising plans by the US investment firm GQG Partners has also boosted investor optimism.

In addition to retail investors, the rebound in Adani shares has also pleased India’s largest insurer, Life Insurance Corporation (LIC).

The Value of Adani by LIC investments has also recovered

Rebounding Adani stock has replenished more than half of LIC’s fortune lost in the Hindenburg-led implosion.

India’s largest institutional investor owns 9.12% in Adani Ports, 6.41% in ACC and 6.3% in Ambuja Cements. Other Adani holdings include Adani Total Gas (6.02%), Adani Enterprises (4.26%), Adani Transmission (3.68%) and Adani Green Energy (1.36%).

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