India's Gautam Adani lost his title of Asia's richest person on Wednesday as a rout in his conglomerate's stocks deepened to $74 billion after a short-seller report, APA reports citing Reuters.
A report by Hindenburg Research last week alleged improper use of offshore tax havens while flagging concerns about high debt and the valuations of seven listed Adani companies.
It has brought heightened scrutiny of the conglomerate with an Australian regulator saying on Wednesday that it would be reviewing the allegations to see if further enquiries are warranted.
The Adani Group has denied the allegations, calling them baseless and saying it has always made necessary regulatory disclosures.
"With the stocks down despite Adani's rebuttal, it clearly shows some damage on investor sentiment. It will take a while to stabilise," Baliga added.
Adani Enterprises (ADEL.NS) lost 5% on Wednesday to bring its losses since the Hindenburg report to more than $8 billion. Adani Power (ADAN.NS) fell 5%, while Adani Total Gas (ADAG.NS) slumped 10%, down by its daily price limit.
Adani Total Gas, a joint venture between France's energy major Total (TTEF.PA) and Adani Group, has been the biggest casualty of the short seller report, losing about $27 billion.
Wednesday's stock losses saw Gautam Adani slip to 10th on Forbes rich list with an estimated $84.1 billion, just below rival Mukesh Ambani, the chairman of Reliance Industries Ltd (RELI.NS) who has an estimated $84.4 billion. Before the Hindenburg report, Adani had ranked 3rd.
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