What next for the Adani Group? On Wednesday the flagship company of the Indian conglomerate cancelled a secondary share offering, which had been fully subscribed, after its share price plunged. The rout started last week when Hindenburg Research, an American short-seller, accused the Adani Group of accounting fraud and share-price manipulation—charges that it forcefully denies.

The threat does not appear existential. Gautam Adani, the founder and until recently the world’s third-richest man, is considered an able operator and his companies own many valuable assets. No rating agency has yet reappraised the group’s debt, which boasts an investment grade.

Yet it is hard to believe that Mr Adani’s grand investment plans will be unaffected. Between 2023 and 2027 his group was forecast to spend more than $50bn on investments. If the yields on Adani bonds remain elevated and its share prices depressed, securing the necessary funds will prove difficult. Foreign investors are not taking any chances. In just two recent days, global funds pulled a net $1.5bn from the Indian stockmarket.

Above from the Economist.

in a larger article they discuss whether this alters the glossy investment case for all things india ? The short answer is: depends if there appears

to be a sensible investigation by Indian stock exchange or whether their is a crony capitalist response to one of Modi’s mates. The government is relying on a bunch of Adani investments to drive a big infrastructure splurge.