Gautam Adani, one of the richest men in the world, has increased his wealth by nearly $48 billion.
Mr. Adani, who was named Asia’s richest man by Forbes magazine earlier this week with an estimated net worth of $119 billion, is now in seventh place after a massive sell-off that began earlier this week.
Markets in India were closed on Thursday for a public holiday and reopened yesterday. To date, his business empire has accumulated over $50 billion in losses.
Adani Group dismisses the allegations in the report, describing them as “a malicious combination of selective misinformation and outdated, baseless and discredited allegations that have been reviewed and dismissed by India’s highest courts.”
It says that Hindenburg Research, the company that produced the report, did not contact the Adani Group.
The Indian company said the publication was timed to tarnish its reputation ahead of a major share offering due to close next week.
The stock market crash sent the shares of Adani Enterprises, the group’s main company, down almost 20 percent.
Hindenburg, named after the 1937 Hindenburg airship disaster as it signifies a preventable man-made disaster, has released a 100-page report questioning Adani Group’s management practices and debt.
Hindenburg and his supporters would benefit from a fall in Adani stock through a method known as selling short.
The company has successfully capitalized on similar previous actions, including against electric truck maker Nikola and Twitter.
The sharp sell-off was partly due to comments from U.S. hedge fund manager Bill Ackman, who voiced support for the Hindenburg report.
Mr. Ackman, who said he had no financial interest in the Adani venture, said he considered the Hindenburg report to be “very reliable and extremely well researched.”
Mr. Adani, 60, first founded his company in 1988 and began trading in commodities. but has since built a business empire ranging from airports to coal mines. He is said to be friends with Indian Prime Minister Narendra Modi. Both men are from Gujarat in western India.
The sell-off sparked a political row in India yesterday as an opposition party in Congress called on India’s financial regulator and central bank to launch an investigation.
The Congress Party has often accused Adani and other billionaires of being favored politically by the Modi government, accusations the billionaire denies.
India’s capital markets regulator is looking into the Hindenburg report.