Effect of Hindenburg Research report: Adani Group halts work on Rs 34,900 crore petrochemical project

The report of US short-seller Hindenburg Research has caused huge losses to the Adani Group. Even though there has been a recovery in the shares of group companies for a few days, many projects of Gautam Adani have suffered a lot due to this report. According to reports, the Adani Group has now stopped work on its petrochemical project worth Rs 34,900 crore. Work on this project was going on in Mundra, Gujarat.
According to the report, Adani Group is currently focused on strengthening the operations of the companies and addressing the concerns of the investors. Adani Enterprises formed Mundra Petrochem Limited subsidiary in the year 2021 to build a coal-to-PVC plant on the land of Adani Ports in Kutch, Gujarat.
Reports suggest that the group has decided not to go ahead with its 1 million tonnes per annum green PVC project for the time being. News agency PTI reported on Sunday that the group has also sent an email to vendors and suppliers to stop all activities immediately. In the mail, the group has asked Mundra Petrochem Limited's green PVC project to stop all activities till further notice.
Things have changed a lot for the Adani Group since the Hindenburg Research report came out on January 24. In the Hindenburg report, Adani Group was accused of several serious allegations like accounting fraud and stock manipulation. After this, the total market value of Adani Group companies had fallen to $ 140 billion. The Adani Group, involved in businesses ranging from apples to airports, is now trying to win back the trust of its investors. In such a situation, the expansion plan of the group has suffered a setback.
Adani Group's comeback strategy is based on addressing the debt concerns of investors. The group is working to fight off Hindenburg Research's allegations by paying off some loans and consolidating operations. The group denied all allegations made by Hindenburg. Adani Group is re-evaluating its projects based on cash flow and available finance.