Shares of Adani Group companies, including Adani Enterprises, Adani Green Energy and Ambuja Cements, declined in Monday's trade amid the report that the group has suspended work on a Rs 34,900 crore petrochemical project in Gujarat's Mundra. The group was looking to refinance $1.15 billion of overseas bonds at two group firms, Adani Green Energy and Adani Ports SEZ via private placements, according to reports. The US Federal Reserve will hold a policy meeting later this week, and the broader market sentiment was weak due to concerns over the US banking system.
Shares of Adani Enterprises were trading at Rs 1,812. They were trading 3.44 per cent lower at 9.25 am. Adani Ports declined 1.52 per cent to Rs 669.75. Adani Power was down 3.18 per cent at Rs 193.60. Adani Transmission fell by 2.8 per cent to Rs 996.20. Adani Green Energy fell by 1.4 per cent, Adani Total Gas and Adani fell by 2.71 per cent and 1.59 per cent. Cement stocks of Ambuja Cements and ACC declined by 1.07 per cent and 0.56 per cent. NDTV, another group stock, fell 0.95 per cent.
A PTI report suggests that the Gautam Adani-led group has decided not to pursue the Gujarat project for the time being. PTI reported that it sent emails to vendors and suppliers to suspend all activities on an immediate basis. The Adani Group's flagship company, Adani Enterprises, had incorporated Mundra Petrochem, a wholly-owned subsidiary, in 2021, for a greenfield coal-to- PVC plant in Adani Ports and Special Economic Zone APSEZ land in Kutch, Gujarat.
Recently, the Adani group cancelled a 7,017 crore coal plant purchase and shelved plans to bid for a stake in power trader PTC India. A report on the 1 million ton per annum Green PVC project, if true, would add to the group's recent steps to reduce its debts.
According to the report by the ET, the group is engaged in exploratory talks with potential overseas investors, such as global insurance firms, to privately place longer-tenor bonds of up to 30 year maturities. The report said that the group has shortlisted two bond tranches, amounting to $500 million and $650 million, respectively, of Adani Green Energy and Adani Ports SEZ. The group believes there will be a good appetite for its bonds in the private market, since most of the debt is backed by strong cash flows, as per the ET report.
15 billion bonds are being issued.