Adani Enterprises, Adani Ports, other Adani group shares in focus today on suspension of Rs 34,900 crore Gujarat project
Adani Enterprises, Adani Ports & SEZ and other group shares such as Adani Transmission, Adani Total Gas and Adani Power will be in focus in Monday’s session amid a PTI report that suggested the Adani Group has suspended work on a Rs 34,900 crore petrochemical project in Gujarat’s Mundra. To recall, the Adani group recently cancelled a Rs 7,017 crore coal plant purchase and shelved plans to bid for a stake in power trader PTC India. The fresh report on the 1 million tonnes per annum Green PVC project, if true, would add to the group’s recent steps to downsize its debts.
The PTI report suggested that the Gautam Adani-led group has decided not to pursue the project, for the time being and that it has sent emails to vendors and suppliers to suspend all activities on an immediate basis. The Adani group’s flagship firm Adani Enterprises had in 2021 incorporated Mundra Petrochem, a wholly-owned subsidiary, for setting up a greenfield coal-to-PVC plant at Adani Ports and Special Economic Zone (APSEZ) land in Kutch, Gujarat.
Adani group shares have recovered of late, as the company made several clarifications and prepaid loans in a bid to allay investor concerns. It recently sold Rs 15,446 crore worth of shares in four of its companies to US-based GQG Partners.
The group’s flagship Adani Enterprises has seen its shares soaring 127 per cent from their 52-week low of Rs 1,017.10 hit on February 3. Adani Green Energy shares are up 86 per cent from a one-year low of Rs 439.35 hit on February 28. Adani Ports & SEZ is up 72.20 per cent from February 3 low of Rs 394.95. Adani Transmission jumped 63 per cent to Rs 1,024.85 from a low of Rs 630 on March 1. Adani Total Gas hit a one-year low of Rs 655 on the same day. This stock is up 37 per cent since then. Adani Wilmar shares have risen 31 per cent from a 52-week low of Rs 327. Adani Power shares are up 22 per cent in the last one month.
As per PTI, the group was re-evaluating various projects being implemented in different business verticals. Based on future cashflow and finance, some of the projects are being re-evaluated for its continuation and revision in timeline, PTI suggested the group as saying.
Adani’s unit was to have a poly-vinyl-chloride (PVC) production capacity of 2,000 KTPA (kilo tonne per annum) requiring 3.1 million tonnes per annum (MTPA) of coal that was to be imported from Australia, Russia, and other countries, the news agency said.
A group spokesperson told the news agency that AEL will be evaluating the status of growth projects in the primary industry verticals over the coming months. “The balance sheet of each of our independent portfolio companies is very strong. We have industry-leading project development and execution capabilities, strong corporate governance, secure assets, and strong cashflows, and our business plan is fully funded. We remain focused on executing our previously outlined strategy to create value for our stakeholders,” the spokesperson said.
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