Hindenburg effect: Gautam Adani’s net worth dips below $50 billion

Billionaire Gautam Adani's net worth fell below $50 billion on Monday, updated data from the Bloomberg Billionaires Index showed. His total fortune now stands at $49.1 billion.

Just a month ago, the 60-year-old industrialist's net worth was around $120 billion, making him the third richest person in the world. That changed drastically after a small American short seller, Hindenburg Research, came out with a scathing report on the Adani Group.

The short-seller's report sent ripples through the Indian stock market, ripping through the market valuation of Adani Group's listed companies. It may be noted that the seven core Adani Group firms have lost a combined market valuation of $120 billion. While the

Adani Group denied the allegations made by Hindenburg, the report raised concerns among investors and financial institutions, resulting in a continued fall in the share prices of its listed companies.

However, this has had a serious impact on the personal wealth amassed by the industrial magnate, whose wealth has fallen by $71 billion since the beginning of the year. This makes the erosion of Adani's wealth the sharpest among the 500 richest people listed on the Bloomberg Billionaires Index.

With its rapidly declining net worth, Adani has also lost the coveted position of Asia's richest man to Mukesh Ambani, who is ranked 11th in the index with a net worth of $83.6 billion. It might take time for Gautam Adani to close the gap with Ambani and regain the position, given the sharp erosion in the value of the listed companies' shares.