The Adani group recently abandoned plans to bid for a stake in a power trader and scrapped a Rs 7,017 crore coal plant purchase.
It was reported that the Adani Group has halted development on a Rs 34,900 crore petrochemical project in Gujarat’s Mundra. Adani Enterprises, Adani Ports & SEZ, and other group shares like Adani Transmission, Adani Total Gas, and Adani Power will also be under scrutiny. Recall that the Adani group recently scrapped plans to bid for a stake in a power trader and halted a Rs 7,017 crore coal plant purchase. If accurate, the new report on the 1 million tonnes per year Green PVC project would support the group’s recent efforts to reduce its debt.
The Gautam Adani-led group has chosen not to move further with the project for the time being and has notified all suppliers and vendors through email to halt all operations immediately. Adani Enterprises, the parent company of the Adani group, established Mundra Petrochem as a wholly-owned subsidiary in 2021 with the intention of building a greenfield coal-to-PVC facility on Adani Ports and Special Economic Zone (APSEZ) land in Kutch, Gujarat.
As the company worked to allay investor concerns, the Adani Group has recently seen a rebound in its stock price. It recently sold shares in four of its enterprises to US-based GQG Partners for Rs 15,446 crore.
Shares of the group’s flagship company, Adani Enterprises, have increased 127% since their 52-week low of Rs 1,017.10 on February 3. Shares of Adani Green Energy are now up 86% from their February 28 low of Rs. 439.35. Adani Ports & SEZ is up 72.20% from its low of Rs. 394.95 on February 3. Adani Transmission increased 63% from a low of Rs 630 on March 1 to Rs 1,024.85 before rising further. On the same day, Adani Total Gas experienced a one-year low of Rs 655. Since then, the share price has increased by 37%. Shares of Adani Wilmar have increased 31% since reaching a 52-week low of Rs 327. Adani Power shares are up 22 per cent in the last one month. In the past month, shares of Adani Power have increased by 22%.
The committee was reviewing numerous projects that were being carried out in various economic sectors. Some projects are being reevaluated for continuation and timeline revision based on future cashflow and finances.
Adani’s plant was designed to produce 2,000 KTPA (kilo tonnes per annum) of polyvinyl chloride (PVC) and needed to import 3.1 MTPA (million tonnes per annum) of coal from Australia, Russia, and other nations.
Over the upcoming months, AEL will assess the progress of growth projects in the major industry verticals. “Each separate portfolio company has a very robust balance sheet. Our business plan is fully funded, and they have industry-leading project development and execution capabilities, excellent corporate governance, secure assets, and strong cashflows. They are committed to carrying out the previously defined strategy to benefit the stakeholders.
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