Adani Group clarifies suspension of Rs 34,900 Cr petchem project

Adani Group clarifies suspension of Rs 34,900 Cr petchem project

Adani Group provides clarification on Rs 34,900-crore petrochemical project

Adani Group has clarified its position on the status of its flagship company Adani Enterprises’ petrochemical project at Mundra in Gujarat.

The clarification follows reports that Adani Enterprises had suspended work on the project following a report by US-based short seller Hindenburg Research. Adani stated that the financial closure of the Green PVC project of its Mundra Petrochemicals Limited is pending with the financial institutions, and it is hopeful of obtaining closure for the project in the next six months.

Once obtained, full-fledged procurement and construction activities at the site will commence. Adani Enterprises’ shares settled 3.84% lower at Rs 1,805.10 apiece on BSE today after the news emerged.

Adani Group addresses investor concerns

After allegations of accounting fraud, stock manipulation, and other corporate governance lapses leveled by Hindenburg Research that slashed about $140 billion from Adani Group’s market value, the company is fighting back with a comeback strategy.

This strategy includes repaying some loans, consolidating operations, and denying all allegations. Adani Enterprises had incorporated a wholly-owned subsidiary, Mundra Petrochem Ltd, in 2021 for setting up a greenfield coal-to-PVC plant at Adani Ports and Special Economic Zone land in Kutch district of Gujarat.

The group has shot off mails to vendors and suppliers to “suspend all activities” on an immediate basis for the 1 million tonne per annum Green PVC project.

About Adani Group:

Adani Group, with its flagship company Adani Enterprises, is a multinational conglomerate based in Ahmedabad, India. Gautam Adani founded the company in 1988 as a commodity trading business.

For More Latest News Click Here

Leave a Reply

Your email address will not be published. Required fields are marked *