Hindenburg fallout: Adani Group has stopped work on $ 4 billion i.e. about 34,000 crore coal to polyvinyl chloride (PVC) project in Kutch district of Gujarat. The group has taken such a decision in view of consolidating its operations and addressing the concerns of the investors.
The Adani Group has suffered huge losses since the Hindenburg report came out. Adani Group is doing recovery, but still it has suffered more losses. According to PTI sources, Adani Group’s flagship company Adani Enterprises Ltd will form a wholly owned subsidiary to set up a greenfield coal-to-PVC plant in Gujarat’s Kutch district by 2021 on Adani Ports and Special Economic Zone (APSEZ) land. The company Mundra Petrochemical Limited was incorporated.
Hindenburg’s report gave a shock
Hindenburg Research came on 24 January. Since then, the market cap of Adani Group has decreased by $ 140 billion. The group is making every effort to recover. 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 win back the trust of investors by repaying the debt. The strategy is based on consolidating operations and addressing investor concerns against charges. Please tell that Adani Group has denied all the allegations of Hindenburg.
Adani Group is re-evaluating projects on the basis of cash flow and finance. Of the projects, the group has decided not to pursue the 1 million tonne per annum Green PVC project for the time being.
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