Adani Enterprises Shares Bounce Back As Company Issues Clarification On Mundra PVC Plant

Adani Group‘s flagship company Adani Enterprises saw its shares bounce back on Tuesday as the company responded to reports of the company halting work on its ₹34,900 crore project.

What Happened: Several media reports late last week stated that the company had halted work on a petrochemical project at Gujarat's Mundra. The company on Monday informed the exchanges that it has decided to “keep the major equipment procurement and site construction activities on hold.”

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The company said that the financial closure of the project is pending with the financial institutions and it has decided to continue with the engineering design and other activities including financial closure due to the recent market developments.

In a regulatory filing, the company added that it expects to obtain financial closure for the project in the next six months, after which it will resume the major equipment procurement and site construction activities. “We are committed to completing the project in an expeditious manner so as to meet the original timelines,” the company further said.

All listed stocks of the embattled group opened in the green as the markets opened on Tuesday.

Price Action: Adani Enterprises shares were up 1.83% at ₹1,838.20 at market open on Tuesday.

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Posted In: adani enterprisesAdani GroupGautam AdaniHindenburg Research