Only two weeks ago, Indian entrepreneur Gautam Adani and his enormous conglomerate seemed unstoppable. However, the Adani Group’s market value has decreased by US$108 billion since Hindenburg Research accused the business of stock manipulation and accounting fraud in a study released on January 24.
The potential for long-term ramifications, though, wasn’t made clear until the billionaire last week cancelled a US$2.4 billion share sale. Adani’s response to the study did not assuage investors. He used to be ranked No. 2 among the richest persons in the world, but according to the Bloomberg Billionaires Index, he is now No. 21.
A destructive short-seller attack has pushed a billionaire through the worst financial crises of his career and is raising increasingly serious questions about India’s reputation as a place for foreign investment and a driving force behind the world economy.
Anand Mahindra, though, would categorically deny that India’s ambition to become a global giant will be affected by the current economic challenges.
Anand Mahindra made reference to the crisis surrounding the Adani Group in a tweet
Including the fact that India had previously survived crises and emerged stronger each time
Anand Mahindra advised anyone worried about the effects of the Adani Group’s alleged accounting fraud by US short-selling firm Hindenburg Research not to bet against India.
Taking to Twitter, he wrote,
“Global media is speculating whether current challenges in the business sector will trip India’s ambitions to be a global economic force. I’ve lived long enough to see us face earthquakes, droughts, recessions, wars, terror attacks. All I will say is: never, ever bet against India”
His tweet received a lot of responses and quickly went viral. Many people voiced their support for the Mahindra Group chairman, but others claimed that he was treating the problem with extreme laxity.
Have a look at some of the responses
What are your thoughts on Anand Mahindra’s remarks?
