Adani stocks tank after Rs 34,900-crore petchem project suspension shows Hindenburg fallout still lingering on

Adani stocks tank after Rs 34,900-crore petchem project suspension shows Hindenburg fallout still lingering on

Adani Group stocks fell on Monday with Adani Enterprises shares falling 3.4% to Rs 1813.40 after the reports of Gautam Adani-led group suspending a Rs 34,900 crore petrochemical project at Mundra in Gujarat to focus on resources to consolidate operations and address investor concerns following a damning report by Hindenburg Research LLC.

The group sent emails to vendors and suppliers and asked them to “suspend all activities of the scope of work and performance of all obligations” for Mundra Petrochem Ltd’s Green PVC project “till further notice”. This is the following “unforeseen scenario”. The management, it said, was “re-evaluating various project/s being implemented at group level in different business verticals. Based on future cash flow and finance, some of the project/s are being re-evaluated for its continuation and revision in the timeline,” reported PTI citing sources.

Hindenburg Research on January 24 accused the Adani family of stock manipulation and fraud and in just a few days Adani group’s market capitalisation fell over Rs 10 lakh crore. Gautam Adani-led group has refuted the charges and has taken several steps to regain investors’ trust. On Friday, the National Stock Exchange (NSE) removed Adani Enterprises, Adani Power, and Adani Wilmar from its short-term additional surveillance measures (ASM) framework.