Mar 16, 2023By: Rounak Jain
According to the IIFL Wealth Hurun India Rich List 2022, Vinod Shantilal Adani is the sixth richest Indian with a wealth of ₹1.69 lakh crore. His wealth grew by 9.5 times in just 12 months (from 2021 to 2022). He added ₹102 crore everyday to his networth during this period.
Vinod Adani is also the richest non-resident Indian, according to the IIFL Wealth Hurun India Rich List 2022.
“Vinod also participated in the Adani Group's $6.5 billion acquisition of Swiss firm Holcim's stakes in Indian cement producers Ambuja Cements and ACC last September. His (Vinod Adani) Mauritius-based company Endeavour Trade and Investment Limited purchased a 63 percent stake in Ambuja and 57 percent stake in ACC,” said a report by Forbes.
“A month later, in October, Vinod used another Mauritius entity he controls—Harmonia Trade and Investment Limited—to inject some $600 million into Ambuja by purchasing warrants that convert to shares. According to the filing, Harmonia will have to pay another $1.8 billion to Ambuja when it converts those warrants to shares, which would then give Harmonia a 19.4 percent stake in Ambuja—bringing Vinod’s overall stake in the cement maker to 70.3 percent,” the Forbes report added.
“Endeavour Trade and Investment Limited (controlled by Mr. Vinod Adani), the acquirer of ACC Limited and Ambuja Cements Limited, belongs to Adani Group. This fact has been disclosed in our public offer document dated 19 August 2022,” an Adani spokesperson told CNBC-TV18.
While the Hurun rich list pegged Vinod Adani’s wealth at ₹1.69 lakh crore or approximately $20.8 billion, the Forbes report has revised his wealth upwards to $33.4 billion after the findings of its investigations.
Adani group had disclosed Vinod Adani as a related party on page 348 of the red herring prospectus dated January 23, 2023, under the heading ‘Our Promoter Group’, issued by Adani Enterprises for its follow-on public offer.
“Vinod Adani does not hold any managerial position in any Adani listed entities or their subsidiaries and has no role in their day to day affairs. We reiterate that any transactions by the Adani portfolio companies with any related party have been duly identified and disclosed as related party transactions in compliance with Indian laws,” said Adani group on January 29, 2023, in its response to Hindenburg Research’s allegations.
In its report, Hindenburg Research said it had found “at least 8 Mauritius-based entities associated with Vinod Adani and Subir Mittra (the head of the Adani private family office).