Gautam Adani's fortune grows by $5.6B in just 6 days
Gautam Adani's net worth has increased by $5.6 billion since Tuesday as Adani Group's stocks rallied after the conclusion of hearings in a case involving allegations of corporate wrongdoing against the conglomerate Now ranking 20th on the Bloomberg Billionaires Index, Adani has a fortune of $65.8 billion. The Adani Group's shares also surged up to 15% in early trade on Monday after the Bharatiya Janata Party (BJP)'s electoral victories in Madhya Pradesh, Chhattisgarh, and Rajasthan on Sunday.
Supreme Court reserves verdict on probe
The Supreme Court is yet to deliver its verdict on the probe into allegations against the Adani Group. Reserving its verdict, it stated it won't take negative media reports on the conglomerate as the "gospel truth." Investors view the court's observations positively, sparking a relief rally in Adani's group of companies. Abhay Agarwal, founder and portfolio manager at Mumbai-based Piper Serica Advisors, said, "The general view is that the worst is behind and now we will not hear about Hindenburg."
Recent developments and investments
In recent months, the Adani Group has secured a $3.5 billion refinancing, funding from a US government-backed financier for a Sri Lanka port project, and investments from GQG Partners and Qatar Investment Authority. Last week's gain only partially compensates for the wealth erosion Adani has experienced this year, with a loss of $55 billion. Meanwhile, market analysts suggest that the ruling BJP's strong performance in state elections has alleviated concerns about political risks leading up to the 2024 general elections.
Today's stock-specific movements
On Monday, Adani Enterprises surged 10% to Rs. 2,584.05 on the Bombay Stock Exchange (BSE), hitting the upper circuit. Adani Green Energy rose 14.75% to Rs. 1,178, while Adani Power gained 5.62% to Rs. 464.95. Other group entities like Adani Energy Solutions and Adani Total Gas also saw positive movements, with shares increasing by 6.61% to Rs. 912.55 and 6% to Rs. 743.3, respectively.
