Hindenburg gives a Masterclass – Adani flunks

By Andy Mukherjee

Without even betting a single dollar in the Indian market, a short seller from New York managed to torpedo the country's most prestigious share sale, dimming the aura of unassailability around its sponsoring tycoon. That's the power of borderless money — it can pull the ladder from under the world's largest fortunes from 8,000 miles away. In winning the first round of its battle against Gautam Adani, Hindenburg Research has given us a masterclass in financial globalization.  

Late Wednesday night in India, Adani Enterprises Ltd. informed stock exchanges that it had decided not to proceed with the $2.4 billion public offer that had concluded the previous day. The last-minute success of the fund-raising plan, engineered with the help of Abu Dhabi's royals and family offices of other Indian billionaires, couldn't prevent a 28% collapse in the stock the very next day. So, the board felt that going ahead with the issue "will not be morally correct," Adani said in a statement. The subscription monies are being returned. "For me, the interest of my investor is paramount," the 60-year-old group chairman said in a video address to shareholders. 

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