Shares of Adani Group‘s flagship company Adani Enterprises started the new week in the red as reports surfaced that the company was shutting off work on its ₹34,900 crore plant.

What Happened: Several media reports late last week said that the company had stopped the development of a petrochemical project at Gujarat’s Mundra. The reports cite the group’s priority of restoring investor confidence as the reason behind the decision. The Adani Group has been under extreme pressure and scrutiny since the Hindenburg report came out.

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The company has reportedly also dropped its plans to raise around ₹14,000 crore from a consortium of Indian banks including the State Bank of India. The company was in the process of setting up the coal-to-PVC plant since 2021. It had incorporated a new subsidiary Mundra Petrochem to develop the plant at Adani Ports and Special Economic Zone-owned land in Gujarat.

The news seems to have dampened the stock that had been seeing recovery for the past few weeks. Shares of all the 10 listed companies were in the red as the markets opened on Monday.

Price Action: Shares of Adani Enterprises were trading 3.07% lower at ₹1,819 at market open on Monday.

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