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Aug 23, 2022, 6 tweets

#AdaniGroup sheds ₹94,000 crore in value after a report says it’s ‘deeply over-leveraged’

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By @jainrounak

All the seven #AdaniGroup companies were hammered on the stock exchanges today after a CreditSights report outlined that it is ‘deeply over-leveraged.’

In the first half of trading today, Adani Group lost over ₹94,000 crore in value, with the top loser being #AdaniGreen.

#GautamAdani’s spectacular rise to the top of India’s richest man, is fueled by debt, the report said. Two years ago, his total wealth stood at a meagre $10 billion – in comparison to today when he is now worth $136 billion.

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The report said that most of #GautamAdani’s fortunes constitute ‘paper wealth’. His spot in the top richest men list is fuelled by the value of his stock holdings.

This #debt that could unravel Adani’s sprawling business empire, according to the report.

The report went on to point out that the group’s competition with #RelianceIndustries, low equity infusion as risks, while maintaining that the #AdaniGroup can gain from the Indian government’s massive infrastructure spends.

While today’s rout in the #AdaniGroup companies is big, investors who put their money in the Adani empire in 2020 have seen huge returns – every ₹1 lakh invested in the Adani Group in 2020 is now worth over ₹7 lakh.

Here are the returns of the seven Adani Group companies👇

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