Gautam Adani, the chairman of the Indian conglomerate Adani Group, has seen his fortune take a dramatic turn in recent weeks. After a $2.5 billion share sale, Adani bonds rallied, signaling the company’s strength in the market.
However, Adani has since lost $36 billion in days and investors are now questioning the company’s financial stability.
The Adani Group has been in a battle with Hindenburg Research, a short-seller that released a report alleging Adani has been involved in fraudulent activities. The report has caused investors to size up their exposure to the global banking sector.
Western banks have been accused of repeating the same mistakes they made in China when they invested in the Adani Group. Critics argue that the banks are not properly assessing the risk of investing in the Indian conglomerate.
The Australian regulator is now looking into the short-seller report and is reviewing the situation.
For more information on the Adani Group and the ongoing battle with Hindenburg Research, view the full coverage on USNN.