Adani to halt some investments, focus on current projects

The Adani group has told domestic lenders that it will pause some of its proposed investments, especially those without funding commitments, and focus on the ones where work has already started, said two people aware of the development.

- Shayan Ghosh & Anirudh Laskar

 

Some of the projects the group has decided to delay are under Adani New Industries Ltd, a company set up to expand the group’s renewable energy initiatives. Lenders said that the shift in strategy came after France’s TotalEnergies put on hold its plan to buy a 25% stake in Adani New Industries.

“Adani Group’s solar module manufacturing business was supposed to get a chunk of the ₹20,000 crore follow-on public offering proceeds, which was called off due to stock volatility despite being fully subscribed. The group wanted to give this business a fillip, but that won’t happen now. This business will continue at its usual pace," said one of the people cited above.

Adani has also called off its planned acquisition of the thermal power assets of DB Power Ltd in February.

“This was part of the group’s discussions with senior bankers immediately after the stock volatility in the wake of the Hindenburg report," the second person said, also requesting anonymity.