Gautam Adani, the Indian billionaire and chairman of the Adani Group, has seen a significant drop in his ranking on Forbes’ rich list following the release of a report by Hindenburg Research. The report, which accuses Adani of financial irregularities and insider trading, has caused Adani to fall from 3rd to 7th on Forbes’ list of India’s richest people.
The Hindenburg report alleges that Adani inflated the value of his assets, understated liabilities, and engaged in insider trading. The report also claims that Adani’s companies have not been transparent about their financials and have not been forthcoming about their dealings with the Indian government.
The Adani Group has denied the allegations and has stated that the report is based on misinformation and false facts. They have also stated that they will take legal action against Hindenburg Research.
Forbes, in the light of the accusations, has stated that they will be closely monitoring the situation and will take appropriate action if any of the allegations are proven to be true. They also stated that they will be reviewing the information provided by Adani Group to see if any discrepancies exist.
Despite the allegations, Adani’s net worth is still estimated to be around $50 billion, which is a significant amount. However, his ranking on Forbes’ rich list has been affected by the report, which has caused him to fall from 3rd to 7th.
Nathan Anderson started Hindenburg Research LLC, a New York City-based investment research business specialising in activist short-selling. The business, named after the 1937 Hindenburg tragedy, which they define as a man-made preventable calamity, publishes public reports on their website alleging corporate fraud and misconduct. Adani Group, Nikola, Clover Health, Kandi, Lordstown Motors, and Tecnoglass are among the companies that have been the focus of their reports. These reports also defend the practise of short-selling, claiming that they “play a key role in uncovering fraud and protecting investors” by having short holdings in the firm prior to issuing reports.