The S&P Dow Jones is removing Adani from its index, further adding to the Indian conglomerate’s mounting woes.
Dow Jones has announced plans to remove embattled Indian multinational conglomerate Adani Enterprises from its sustainability index. According to the Dow Jones, Adani’s removal will take effect from Tuesday, February 7th.
“Adani Enterprises will be removed from the Dow Jones Sustainability Indices following a Media & Stakeholder Analysis triggered by allegations of stock manipulation and accounting fraud,” reads the announcement.
Although Adani is yet to issue a retort to the S&P Dow Jones development, the company’s stock traded 30% lower in Mumbai on Friday.
Adani Enterprises Was Added to Dow Jones Sustainability Emerging Markets Index Last December
As of December 19th, 2022, Adani was still operating undisturbed on the Dow Jones Sustainability Emerging Markets Index. However, the Ahmedabad-headquartered conglomerate recently slipped into a cesspool of mounting share losses amid US short-seller criticism.
The Dow Jones Sustainability Emerging Markets Indices grade companies across 61 industries and score them based on criteria. This criterion entails the companies’ responses to questionnaires known as the S&P Global Corporate Sustainability Assessment.
The S&P Global website states that the indices act as benchmarks for investors looking to “integrate sustainability considerations into their portfolios.” In addition, these indices serve to be an “effective engagement platform for investors who wish to encourage companies to improve their corporate sustainability practices.”
Adani Group Founder & Chairman Suffers Massive Dent in Personal Worth
In late January, Adani Group founder and chairman Gautam Adani sustained a staggering drawdown in his net worth as his company strumbled. However, Adani tried to downplay its sweeping misfortune even though it suffered sharp losses for a third straight time.
Adani lost nearly $50 billion just over a week after a US firm accused his company of stock manipulation and accounting fraud. A Hindenburg’s report took aim at the Indian firm’s operational practices, saying:
“Today we reveal the findings of our 2-year investigation, presenting evidence that the INR 17.8 trillion (US $218 billion) Indian conglomerate Adani Group has engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades.”
In addition, Hindenburg also said of Adani Enterprises’ shares:
“After extensive research, we have taken a short position in Adani Group Companies through US-traded bonds and non-Indian-traded derivative instruments.”
The initial damning report of Adani was enough to see its billionaire founder fall out of the world’s top five richest. At the time, Gautam Adani ranked seventh on the Bloomberg Billionaires Index. However, with the recent stock crash of his company, the Indian tycoon is no longer one of the world’s top 20 billionaires. The Bloomberg Billionaires’ Index ranks Gautam Adani with a current net worth of $61.3 billion on a yearly basis. Meanwhile, the Forbes Real-Time Billionaires Index states that the Adani Group chairman is presently worth $57.3 billion.
Adani has since objected to Hindenburg’s allegations, describing the report as a “malicious combination of selective misinformation.” In addition, the conglomerate claims that it always complied with all laws and vowed to protect its investors.
![Tolu Ajiboye](https://www.coinspeaker.com/wp-content/themes/cs/images/team/ajiboye-tolu-profile-photo-01.jpg)
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.