The tumble continued Wednesday for Adani Enterprises of the Indian Gautam Adani, with a fall of 30% on the Bombay Stock Exchange and the exit of the magnate from the top 10 of the great world fortunes established by Forbes.
The title of the flagship of the conglomerate of Gautam Adani, thus unscrewed by 28.45% to 2,128.70 rupees (26 USD), at the close of the Bombay Stock Exchange.
Adani's personal fortune has shrunk by more than $40 billion in the meantime, according to Forbes real-time rankings, knocking him out of the top 10 richest people in the world.
He is now behind his compatriot Mukesh Ambani.
Gautam Adani is no longer the richest man in Asia.
After the fifth straight day of losses, the rout has erased about $92 billion from the value of the conglomerate's listed companies since last week, according to Bloomberg News.
The title Adani Total Gas, in which the French giant TotalEnergies holds 37.4%, fell again by 10% and trading was again suspended.
The sharp drop in Adani Enterprises stock on Wednesday afternoon comes the day after a successful oversubscribed follow-on public offering (FPO) in the final hours before expiry.
Magnates to the rescue
FPO underwriters included tycoons Sajjan Jindal and Sunil Mittal, Bloomberg News reported, citing sources who spoke on condition of anonymity.
The investments come from their personal funds and do not relate to the listed companies they run, such as JSW Steel Ltd.
and Bharti Airtel Ltd, said these sources, according to the Bloomberg agency.
Sajjan Jindal has invested around $30 million, one source added.
However, the amount of Mr. Mittal's investment was not disclosed.
The losses by the Gautam Adani conglomerate follow US investment firm Hindenburg Research's publication last week of a report alleging "
brazen manipulation of stocks and
".
The conglomerate reacted on Sunday by claiming to be the victim of a "
malicious
" attack aimed at smearing its reputation and dubbed Hindenburg Research the "
Madoff of Manhattan
", in reference to the shady American businessman Bernard Madoff.
“
This is not just an unwarranted attack on any specific company, but a calculated attack on India, the independence, integrity and quality of Indian institutions, and the history of growth and ambition from India
“, he replied in a statement of 413 pages.
Gautam Adani, 60, has seen his empire grow at breakneck speed, with Adani Enterprises' share price soaring more than 1000% in the past five years.
The tycoon made a fortune in ports and commodity trading.
He now heads India's third-largest conglomerate with interests ranging from coal mining and edible oils, to airports and the media.
Political proximity
Critics believe the proximity to Gautam Adani and Prime Minister Narendra Modi, both from Gujarat state, helped the tycoon win deals and avoid proper regulatory scrutiny.
Narendra Modi has not made public comments since the publication of the Hindenburg report, which analysts say has damaged India's image among foreign investors.
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India's opposition Congress party this week called for a "
serious investigation
" by the central bank and regulator into Adani's businesses following the accusations by Hindenburg Research.
“
With all its postures on black money, has the Modi government chosen to turn a blind eye to the illicit activities of its favorite business group?
asked Congress.
The derisive opposition deputies chanted the name “
Adani!
Adani!
on Wednesday, when Finance Minister Nirmala Sitharaman mentioned ports during a budget speech to parliament.
