As Adani loses ‘$100 billion’, here's list of things you can buy with the money (2024)

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As Adani loses ‘$100 billion’, here's list of things you can buy with the money? ›

With $100 billion, you could just buy around 250 Boeing 747s and set up your own private airline. To live like a King, you could buy the world's largest royal domain The Palace of Versailles for $50 billion, which has 700 rooms, 600 paintings, 400 sculptures and 1,400 fountains.

Adani's wealth slumped by more than $80 billion in the month following the report, reaching a low of $37.7 billion. His conglomerate, which at one point lost more than $150 billion in market value, spent months wooing back investors and lenders, repaying debt and assuaging regulatory concerns.

On January 27, Adani lost $20.8 billion in a single day, the largest one-day loss for any billionaire on record. The loss was attributed to a report by Hindenburg Research, a US short-seller firm, which accused Adani's group of accounting fraud and stock manipulation.

Stocks and bonds of Adani companies fell on Monday amid news reports that US prosecutors have widened their probe to investigate whether an Adani company, or people linked to it, including group chairman Gautam Adani, were involved in a pay off to officials in India for "favourable treatment on an energy project".

However, the profits have jumped a staggering 126% Rs 33,920 crore from Rs 15,014 crore in this duration. With profit after tax (PAT) of Rs 18,092 crore Adani Power is the most profitable company of the Adani group. Its PAT has witnessed a year on year (YoY) jump of 230% from Rs. 5,484 crore.

3 seven key Adani companies had collectively lost more than $100 billion of market value.

Gautam Adani's massive net worth loss

Adani's net worth was over $110 billion before the Hindenburg report, and he had replaced Mukesh Ambani as the richest man in India. However, the significant drop in share prices and major deals falling through led to Adani losing nearly 34 per cent of his wealth.

According to Bloomberg Billionaire data, the net worth of the Adani Group's chairman Gautam Adani has touched $90.8 billion as of Wednesday, narrowing the gap with India's richest man, Mukesh Ambani, who is worth $100 billion.

In its investigation, which Hindenburg said took two years to compile, the American firm had questioned the “sky-high valuations” of Adani companies and said their “substantial debt” put the entire group “on a precarious financial footing.” Short-sellers make money by betting that a company's stock will fall.

79.8 billion USD (2024)

Gautam Adani / Net worth

Who brought Adani down? ›

Hindenburg Research, the US-based short seller that caused a massive drop in Adani group shares was done through the use of structured product derivatives (SPDs), according to an investigation by government agencies.

It has a reputation of tearing down some of the best known corporates, and so when Hindenburg Research a year back accused the Adani Group of "brazen stock manipulation" and accounting fraud, it lead to a stock market rout that erased about USD 150 billion in market value at its lowest point.

“If Adani collapses, he would sort of take down a large chunk of the prime minister's economic vision with him,” Sadanand Dhume, a senior fellow at the American Enterprise Institute, told Bloomberg Television. “This is a person who has invested not just in infrastructure, but also in green energy.”

With about $9 billion worth of shares, the GQG Partners has become the largest investor in Adani group companies, after the fund managed by veteran investor, Rajiv Jain gradually upped its exposure in most group stocks, post its maiden acquisition about a year ago.

Advantages of Investing in Adani Stocks.

Historical Returns: Adani companies have delivered exceptional returns over the past five years, with some experiencing over 1,000% growth. This could attract investors seeking capital appreciation.

Shares of all 10 Adani group stocks, including flagship Adani Enterprises, surged by up to 8 per cent during Thursday's trading session, bouncing back after a sharp downturn on Wednesday. Today's strong rally has boosted the Adani Group's total market capitalisation by over Rs 50,000 crore.

Aswath Damodaran, a finance professor at New York University, wrote that even if the worst that has been said about Adani turns out to be true, it has not perpetrated “a con game.” By taking on huge amounts of debt to fuel its growth, Professor Damodaran wrote, Adani had taken “a risk, perhaps a poorly thought through ...

Hindenburg alleged in a report Wednesday that its two-year investigation found the Adani Group “engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades.” It called out the conglomerate's “substantial debt,” which includes pledging shares for loans; that several of its key leaders ...

The Hindenburg Research report alleged that the entities controlled by Vinod Adani, Gautam Adani's elder brother, were used as a “conduit for money laundering and share-price manipulation”. Vinod Adani's name was mentioned in the report 151 times.