Will Gautam Adani be able to bounce back from here?

The downslide of the Adani group’s shares, media targeting the Adani group and Gautam Adani, Congress leader Rahul Gandhi already targeting Gautam Adani for so many years, and now every opposition trying to convert it into a political matter, Indian economy revolving around the Gautam Adani which is already in a bad shape, Indian stock market on the way to crashing down and much more.

Will Gautam Adani be able to bounce back from here?
Image Source: India Today

These are all the problems that Gautam Adani and the Adani group are facing nowadays. It is also going to affect the Indian economy directly or indirectly. The questions are raising continuously will Gautam and Adani can bounce back from here? Will they be able to save or regain their position in the market? 

Will Gautam Adani be able to bounce back from here?

It seems very unlikely as Hindenburg put up all the allegations against them with all the documents and also challenge them to fight in us court if the Adani group thinks the allegations are wrong against them. In simple words, the allegations against the Adani group and Gautam Adani is of fraud, and if they couldn’t be able to prove these allegations wrong, it seems impossible for the Adani group to save themselves. 

What will happen if all the allegations against them will be correct? 

  • The Adani group’s shares will face a downslide of 85%. On 27th January 2023, their shares faced a downslide at an average of 20%.
  • Gautam Adani’s net worth will come down at a very high rate and it is very unlikely that he will be able to pay back his debt to banks.
  • Gautam Adani and the Adani group will have to go into legal custody under the allegations of, money laundering, fraud, and tax theft. 
  • According to the CLSA report, the Adani group has to pay a debt of 81,234.7 crores to banks. If they wouldn’t be able to pay it, the government will be forced to seize their assets to recover the money.

If the allegations are correct, the Adani group will not be able to save themselves from going down. They have to go under legal custody which highly impacts their market position and reputation. And even after facing all the legalities, if they tried to come back it will be impossible to gain the trust of investors and build a reputation in the market.

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