Hindenburg fallout: Adani Group suspends work on petrochem project worth Rs 349 billion

• Posted in OilGas
• on March 20, 2023
• No Comments.

The Adani Group has suspended work on a petrochemical project worth Rs 349 billion at Mundra in Gujarat, reported PTI, citing sources.

This can be linked with the fact that the company is focusing on resources to consolidate operations and address investor concerns following a damning report by a US-based short seller, PTI sources said.

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.

But after Hindenburg Research’s January 24 report alleging accounting fraud, stock manipulations and other corporate governance lapses chopped off about USD 140 billion from the market value of Gautam Adani’s empire, the apples-to-airport group is hoping to claw back and calm jittery investors and lenders through a comeback strategy.

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