The dramatic rout marks a halt to the dizzying rally in shares of some of the Adani Group companies that had added almost $40 billion to the billionaire’s wealth this year.
Shares of six Adani Group companies crashed Monday wiping out more than $6 billion of the companies’ market capitalisation and bringing down Gautam Adani’s net worth.
Adani Total Gas, Adani Power & Adani Transmission all fell by their 5% daily limit Tuesday after Adani group said the 3 funds were facing suspension due to a years-old regulatory order.
The funds own more than 435 billion rupees ($6 billion) in four Adani group firms, the report said, adding that the frozen accounts won’t be able to sell or buy new securities.
Adani's net worth saw a rapid surge in 2021, beating the gains for Warren Buffett and Mukesh Ambani. This included a 330% jump in Adani Total Gas and a 235% rise Adani Enterprises.
The partnership marks the entry of Adani into the three-way fight for domination of India’s online shopping space. Up against the Walmart-Adani alliance is Amazon & Reliance Industries.
According to Forbes World’s Billionaires list 2021, number of Indian billionaires, at 140, is the third highest in the world behind US and China. Bezos and Musk are the richest.
After starting out as a commodities trader in the late 1980s, Adani is now richer than Jack Ma & is India’s second-wealthiest person with a net worth of $56 billion.
The net worth of Adani has jumped $16.2 billion in 2021 to $50 billion. Shares of all Adani group stocks, except one, have rallied at least 50% this year.
For India, the strategic ripples are significant. The immediate concern is Pakistan’s diplomatic gain as it embeds itself deeper into the defence framework of the Middle East.
SEBI probe concluded that purported loans and fund transfers were paid back in full and did not amount to deceptive market practices or unreported related party transactions.
This is the first major attack on central security forces since last November, when a CRPF jawan was killed and four were injured in an ambush in Jiribam on Manipur-Assam border.
To be truly functional and durable, even eternal, a state doesn’t just need a leader, a party or an ideology. It needs functional and robust institutions.
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