Indian Billionaire Adani and His Company Has Reportedly Lost More Than $135 Billion

Indian billionaire Adani (TheStreet)

According to TheStreet, Indian tycoon Gautam Adanis conglomerate is facing allegations of stock-price manipulation and fraud that have chilled investors.

Nearly a month after explosive accusations were made by the short-seller Hindenburg Research, Indian billionaire Gautam Adani and his empire continue to face a tough time. Hindenburg accused the empire of the billionaire, who at the end of January was still Asia's richest man, of stock-price manipulation, fraud, and money laundering. Adani Group rejected these accusations but hasn't reassured the markets. The group has seen a precipitous fall on the stock market, having lost more than $135 billion in market cap as of Feb. 20, Bloomberg News calculated. This is more than half its market value.

Adani Group Hires a Powerful Law Firm

Adani Group has also retained the services of the powerful, and expensive, New York law firm Wachtell, Lipton, Rosen & Katz to respond to the accusations from Hindenburg Research, according to the Financial Times. The law firm is known for defending companies attacked by activist investors.

At the same time, Adani Group is trying to reassure investors about its ability to repay its debts. Investors are watching its leverage ratios and its ability to generate cash flow after it canceled a $2.5 billion share sale.