Gautam Adani, Chairman of the Adani Group, ranks at No. 16 after stock gains boosted his net worth … [+]
Indian billionaire Gautam Adani’s star is rising once again. The chairman of infrastructure conglomerate Adani Group surpassed Dell Technologies chairman and CEO Michael Dell in the wealth rankings after double-digit stock gains added nearly $11 billion to his net worth today. Adani, who was once the second richest person on the planet but whose fortune tumbled in the past year, is now the world’s 16th richest person with a fortune of $70.8 billion.
Shares of all Adani group companies have been surging since Monday after Prime Minister Narendra Modi’s Bharatiya Janata Party emerged victorious in three key state elections when votes were tallied on Sunday. The Modi effect drove up the benchmark stock index as investors saw this win as a precursor to the federal elections due to be held next year. Adani, who is considered to be close to Modi, got a massive boost with shares of his group companies notching up double-digit gains.
Shares of three out of the 10 listed Adani Group companies jumped 20% on Tuesday after a report by the U.S. International Development Finance Corporation concluded that the U.S.-based short-seller Hindenburg Research’s allegations against the Adani Group were “irrelevant”.
In January, Hindenburg released a report alleging stock manipulation and accounting fraud by the Adani group. While the group strongly denied any wrongdoing, the damning allegations sent its shares tumbling and wiped off billions from Adani’s net worth, which shrank to $98 billion in three days from $126 billion, before falling further. In response to the allegations, India’s Supreme Court directed the Securities and Exchange Board of India (SEBI), the stock market regulator to conduct an investigation.
In November, the apex court concluded hearings on multiple petitions filed on the Adani-Hindenburg issue. Investors took a positive cue from the court’s direction to SEBI to conclude its investigation and the observations by the chief justice of India that Hindenburg’s report could not be considered as “credible” and nor should media reports be treated as “gospel truth.” The court was referring to August media reports about a new investigation, which revealed alleged close links between offshore investors and the Adani family.
Despite the massive boost to his wealth this week, Adani still remains the second richest person in India after Reliance Industries chairman Mukesh Ambani, who is ranked at No. 14 with a net worth of $94.9 billion. The market cap of Adani’s group now stands at $166 billion, which is still 30% down from its peak before the Hindenburg bombshell.