A $43 Billion Jump In Gautam Adani's Fortune Is Fraught With Many Risks

Gautam Adani's net worth of $76.7 billion got a boost from a 330% jump in Adani Total Gas Ltd., a 235% rise in Adani Enterprises Ltd. and a 263% increase in Adani Transmission Ltd. this year.

A rally in the stocks of companies controlled by Indian billionaire Gautam Adani has added almost $43 billion to his wealth this year, catapulting him to the spot of the second-richest person in Asia. Some analysts say the gains are fraught with risk. Mr Adani's net worth of $76.7 billion got a boost from a 330% jump in Adani Total Gas Ltd., a 235% rise in his conglomerate's flagship Adani Enterprises Ltd. and a 263% increase in Adani Transmission Ltd. this year. Adani group stocks, especially these three, "look extended," Bloomberg Intelligence analysts Gaurav Patankar and Nitin Chanduka wrote in a June 10 note after analyzing technical indicators. "Among the biggest foreign investors are a few Mauritius-based funds holding over 95% of assets in these companies," the analysts wrote. "Such concentrated positions, along with negligible onshore ownership, create asymmetric risk-reward as large investors conspicuously avoid Adani."