According to publicly available statistics by Bloomberg, Gautam Adani has re-entered the list of the world’s top 20 billionaires. On 28th November 2023, his 10-listed Group equities gained over Rs. 1 lakh crore in market capitalization. Despite the controversy surrounding the Adani debt, the second-richest Indian, worth $66.7 billion, has demonstrated his commitment to his business by adding about $6.5 billion daily. He currently has more wealth than the US’s Charles Koch ($60.70 billion), China’s Zhong Shanshan ($64.10 billion), and the Julia Flesher Koch & family ($64.7 billion).
On 28th November 2023, the Adani Group’s overall market capitalization was Rs. 11,31,096 crore, up 1.04 lakh crore from 28th November 2023, Rs. 10,27,114.67 crores. As of 24th January 2023, the Group’s m-cap is still down 41% over Rs. 19.19 lakh crore.
More than Rs. 1 trillion was added to the Group’s 11 listed companies
The market capitalization (mcap) of the Group’s eleven listed firms increased by more than Rs. 1 trillion, again exceeding the Rs. 11 trillion thresholds. Since April 11, 2023, this was the most significant increase in the Group’s market capitalization in a single day. According to experts, the improvement in investor sentiment following earlier Supreme Court proceedings and the expectation that the power company will now have a clear growth path led to the gains.
This indicates that the Adani debt controversy is nothing more than a hoax composed of false “facts” intended to damage the reputation of a man of integrity. The Supreme Court ended the hearing on the extensive claims. The S.E.B.I. informed the court that it would not pursue further inquiry to finish it. Out of the 24 cases it looked into, it claimed it had finished 22 and turned in the reports, while two still needed information from foreign regulators.
Rajiv Jain – GQG Partners, increased its investment in Adani Enterprises by 10 %
GQG Partners, owned by Rajiv Jain, increased their investment in Adani Enterprises by 10% and pledged to continue supporting the ports-to-power conglomerate’s future fundraising initiatives. On 23rd May 2023, the holding company’s share price shot 19%. Other Adani Group companies saw significant increases in their stock values due to the good trend. Notably, once the report was released, Adani Ports was the top performer in the Adani Group.
GQG Partners, an NRI investor managed by Rajiv Jain, increased its ownership of Adani Group by roughly 10%. At the height of the Hindenburg-driven stock meltdown, GQG Partners bravely took a contra call by investing over Rs. 15,000 crores in Adani stocks. Depending on the valuation, they hope to rank behind the family among the Adani Group’s most prominent investors in five years. GQG’s Adani holdings were estimated to be worth approximately $3.5 billion.
According to Jain, GQG Partners’ investment in Adani Group enterprises was valued at around $3.5 billion. GQG invested almost ₹15,446 crores in four Adani Group entities in March 2023. This investment’s value has increased to approximately ₹25,515 crores, a whopping ₹10,069 crore, thanks to a substantial rise in the Adani Group’s stocks.
Recovers from the Hindenburg saga
In late January 2023, the US-based research firm Hindenburg published a study on the Gautam Adani-owned businesses, citing Adani debt, among other things. Following the apex court’s declaration, the Group’s firms began to rise, adding $15 billion in a single day—the most since the report’s release. On 28th November 2023, Adani Enterprises led the rally with a 13% increase. When the New York-based short-seller Hindenburg Research released a stunning report on 24th January 2023, it leveled several allegations against the Group.
At the time, Adani Enterprises was preparing to launch an F.P.O. (follow-on public offer). The Group’s stock fell precipitously, reducing investor worth in nine companies by as much as $120 billion (about Rs. 10 lakh crore). Adani Power shares started the day higher and reached a new all-time high of Rs. 428 apiece on the N.S.E. Adani Group shares saw a significant increase in value.
The price of Adani Ports’ shares began the day higher and reached an intraday high of ₹826 per share on the N.S.E., recording a gain of about 4%. The flagship Adani Group stock, Adani Enterprises, saw an early increase and, shortly following the opening bell of the stock market on 28th November 2023, reached an intraday high of Rs. 2,374.90 per share.
Conclusion
Gautam Adani’s net worth soared $6.5 billion in a single day, propelling him back into the top 20 wealthiest people in the world. This surge comes as investor sentiment improves following the Supreme Court’s decision not to pursue further investigations into the debt controversy. The Adani Group’s market capitalization also increased significantly, indicating that the Adani debt controversy is untrue.
