BackAdani Enterprises, other Group stocks fall while Adani Green rises
Most Adani stocks fell on a report that the group suspended work on a petrochemical project
PremiumMost Adani Group stocks fell on Monday on the back of a report that suggested that the group suspended work on a petrochemical project at Mundra in Gujarat. Shares of Adani Enterprises, Adani Transmission, Adani Total Gas, Adani Ports and Special Economic Zone (APSEZ), Adani Wilmar were trading with cuts of more than 3-4% on the BSE in early deals whereas Adani Green Energy rose over 3% to ₹853 apiece.
Adani Group has suspended work on a ₹34,900 crore petrochemical project at Mundra in Gujarat as it focuses on resources to consolidate operations and address investor concerns following a damning report by US-based short seller Hindenburg, stated a report by news agency PTI.
The group's flagship Adani Enterprises Ltd (AEL) had in 2021 incorporated a wholly-owned subsidiary, Mundra Petrochem Ltd for setting up a greenfield coal-to-PVC plant at Adani Ports and Special Economic Zone (APSEZ) land in Kutch district of Gujarat.
As part of this, projects are being re-evaluated based on cashflow and finance available. And of the projects the group has decided not to pursue for the time being is the 1 million tonne per annum Green PVC project, as per the report.
The January 24 report alleged accounting fraud, stock manipulations and other corporate governance lapses, leading to eroding about $140 billion from the market value of Indian billionaire Gautam Adani's conglomerate. The group has denied all allegations levelled by Hindenburg. It has repaid some debt and pre-paid some of the finances raised by pledging promoter stake in group companies.
Earlier this month, the Gautam Adani-led conglomerate sold minority stakes in four of its listed companies to the US-based investment firm GQG Partners for ₹15,446 crore.
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