Adani's market losses top $100 bln as crisis shockwaves spread

The shock withdrawal of Adani Enterprises' (ADEL.NS) share sale marks a dramatic setback for founder Gautam Adani, the school dropout-turned-billionaire whose fortunes rose rapidly in recent years but have plunged in just a week after a critical research report by U.S.-based short-seller Hindenburg Research.

Aborting the share sale sent shockwaves across markets, politics and business. Adani stocks plunged, opposition lawmakers called for a wider probe and India's central bank sprang into action to check on the exposure of banks to the group. Meanwhile, Citigroup's (C.N) wealth unit stopped making margin loans to clients against Adani Group securities.

In a shock move late on Wednesday, Adani called off the share sale as a stocks rout sparked by Hindenburg's criticisms intensified, despite it being fully subscribed a day earlier.

"Adani may have started a confidence crisis in Indian shares and that could have broader market implications," said Ipek Ozkardeskaya, senior market analyst at Swissquote Bank.

Adani Enterprises shares tumbled 27% on Thursday, closing at their lowest level since March 2022.

Other group companies also lost further ground, with 10% losses at Adani Total Gas (ADAG.NS), Adani Green Energy (ADNA.NS) and Adani Transmission (ADAI.NS), while Adani Ports and Special Economic Zone (APSE.NS) shed nearly 7%.

Since Hindenburg's report on Jan. 24, group companies have lost nearly half their combined market value. Adani Enterprises - described as an incubator of Adani's businesses - has lost $26 billion in market capitalisation.

Adani is also no longer Asia's richest person, having slid to 16th in the Forbes rankings of the world's wealthiest people, with his net worth almost halved to $64.6 billion in a week.

The 60-year-old had been third on the list, behind billionaires Elon Musk and Bernard Arnault.

His rival Mukesh Ambani of Reliance Industries (RELI.NS) is now Asia's richest person.