Indian billionaire and Chairman of the Adani Group Gautam Adani, a prominent infrastructure conglomerate, has surpassed Michael Dell, the Chairman and CEO of Dell Technologies, in the wealth rankings with a $14.2 billion increase.
Today’s double-digit stock gains contributed to a staggering $14.2 billion (23.52%) increase in Adani’s net worth, from $60.2 billion according to data from the Forbes Real-Time Billionaire Index.
The Indian billionaire Gautam Adani is staging a remarkable comeback as his fortunes stand at $74.3 billion.
Once ranked as the world’s third-richest individual, Adani, whose wealth faced a downturn in the past year, now holds the 16th position among the world’s wealthiest, boasting a fortune of $74.3 billion.
Why did Adani’s net worth increase by over 20%?
The resurgence in Adani’s wealth is attributed to the recent victory of Prime Minister Narendra Modi’s Bharatiya Janata Party in three crucial state elections.
Investors interpreted this win as a potential indicator for the upcoming federal elections next year, propelling the benchmark stock index upward.
Adani, known for his close association with Modi, experienced substantial gains in the shares of his group companies, all of which have been on an upward trajectory since Monday.
Tuesday witnessed a remarkable 20% surge in shares of three out of the 10 listed Adani Group companies.
This surge followed a report by the U.S. International Development Finance Corporation dismissing allegations by U.S.-based short-seller Hindenburg Research as “irrelevant.”
Backstory
Hindenburg Research had earlier accused the Adani Group of stock manipulation and accounting fraud in a report released in January.
Despite vehement denials by the group, these allegations had a significant impact, causing a rapid decline in Adani’s net worth from $126 billion to $98 billion in just three days, followed by further losses.
In response to the allegations, India’s Supreme Court directed the Securities and Exchange Board of India (SEBI) to conduct an investigation.
The apex court concluded hearings on multiple petitions related to the Adani-Hindenburg issue in November.
Investors responded positively to the court’s direction for SEBI to conclude its investigation, along with Chief Justice of India’s remarks discrediting Hindenburg’s report and cautioning against treating media reports as “gospel truth.”
Adani’s resurgence signals a turning point in his financial fortunes, emphasizing the impact of political developments and legal proceedings on the trajectory of one of India’s most influential business figures.