Adani Group: Bad effect of Hindenburg report, Adani put brakes on 34,900 crore project in Gujarat

Hindenburg Fallout: The report of short selling company Hindenburg is having a negative impact on the Adani team. Adani Group had earlier called off its Rs 20,000 crore FPO due to the Hindenburg Report and now another drastic decision has been taken. The Adani Group has halted work on its $4 billion (about Rs 34,000 crore) coal-to-polyvinyl chloride (PVC) project in Gujarat’s Kutch district.

Adani Group has taken this decision to strengthen its operations and keeping in mind the concerns of the investors. This is another important decision taken by the Adani team.

Adani Group suffered huge losses after the Hindenburg Report came out. Adani group is recovering but still has more losses. According to sources, Adani Group’s flagship company Adani Enterprises Limited has signed an agreement with wholly owned subsidiary Mundra Petrochemical to set up a greenfield coal-to-PVC plant on Adani Ports and Special Economic Zone (APSEZ) land in Gujarat’s Kutch by 2021. Ltd. has been contracted. District.

Hindenburg’s report was shocking

The Hindenburg research arrived on 24 January. Since then the market cap of Adani Group has fallen by $140 billion. The team is doing everything possible to bring it back. In view of this, this project has been stopped in Mundra, Gujarat.

What is the strategy of Adani Group?

The turnaround strategy for the Adani group is to regain investor confidence by paying off debt. The strategy is based on consolidating operations and addressing investor concerns against charges. Significantly, Adani Group has denied all the allegations made by Hindenburg.

Adani Group is re-evaluating the project on the basis of cash flows and finance. Among the projects, the group has currently decided to pursue a 1 million ton per year green PVC project.