Indian billionaire Gautam Adani is planning a major restructuring of his family office in the wake of a short-selling scandal, with the restructured management set to oversee the founders’ shareholdings across the Adani Group’s publicly traded companies.
After a challenging 18 months marked by allegations from Hindenburg Research, Adani aims to revamp the family office to restore credibility. With a fortune estimated at $85.7 billion, making him Asia’s second-richest person, Adani is reportedly introducing levels of transparency typically seen in public companies, according to Bloomberg.
The Adani empire has grown rapidly over the past five years, but the momentum was disrupted in January 2023 when Hindenburg Research accused the group of corporate misconduct. The Adani Group has denied these allegations, but the fallout led to a significant drop in the company’s market value.
In response, Adani is moving to strengthen governance by appointing auditors from a top global firm and hiring a CEO for his family office, aiming to boost transparency and trust in his businesses. Discussions are reportedly ongoing with two major accounting firms to audit the family office’s accounts.
The scandal, triggered by Hindenburg Research’s report, resulted in a steep decline in the market value of Adani companies, leading to a $100 billion drop in the group’s valuation. Adani has since taken steps to mitigate the damage, including committing to a corporate governance overhaul and hiring a prominent New York law firm to challenge the allegations.
The revamped family office is expected to enhance the group’s credibility as it continues its global expansion. A new team, led by a CEO and a chief investment officer, will initially report to the Group’s CFO, Jugeshinder Singh, and eventually to Adani himself. The fully operational recast family office is expected by April 2025, with potential structural adjustments along the way.
