When Dhirubhai Ambani
faced short-sellers

What Gautam Adani is facing from Hindenburg is something Reliance Industries' founder Dhirubhai Ambani faced in 80s and he successfully thwarted the challenge, writes Hamish McDonald in his book 'Ambani and Sons'

When Dhirubhai
Ambani wanted to
raise money

Long before Mukesh Ambani took over RIL, in early 1982, Reliance announced a rights issue of partly convertible debentures to borrow money from investors

Kolkata bear cartel
attacks Dhirubhai Ambani

A cartel of bear operators, supposedly from Kolkata, started short selling shares of Reliance. The bears sold 350,000 Reliance shares, causing the price to fall quickly from Rs 131 to Rs 121

What is short selling?

In SEBI's words, short selling is the selling of a stock that the seller does not own at the time of trade. All classes of investors, be it retail or institutional investor, are permitted to short sell

How Dhirubhai
Ambani reacted

Dhirubhai Ambani reacted quickly to the short selling by rounding up "Friends of Reliance". "The more the bears sold the more NRI investors ‘based in West Asian countries’ picked up," wrote Hamish McDonald

How Adani Group is
countering Hindenburg

Ever since the scathing Hindenburg report, Adani Group has called off Rs 20,000-crore FPO of Adani Enterprises, pre-paying $1.1-billion of loans on shares ahead of their maturity in 2024

$109-billion Adani
stock rout

Adani Group lost more than $109 billion as of February 7, 2023 in market value in two weeks since the US short-seller Hindenburg Research's report was published

Credit agencies on
Adani Group stocks

Moody's rating agency has warned the share-price plunge could hit the group's ability to raise capital. Indian banks' exposure to Adani Group is 'insufficient' to pose credit risk, says Fitch

Gautam Adani vs Hindenburg: 9 Facts You Need To Know

Story by: J Jagannath
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