Adani Group dismisses allegations of rigging in coal supply as baseless, big jump in market cap


Mumbai:

On Wednesday, the market capitalization (market cap) of Adani Group’s listed companies stood at Rs. 11,300 crore again to reach $200 billion (Rs. 16.9 lakh crore). Investors have expressed confidence in the group after the company denied any wrongdoing in the supply of coal to the Tamil Nadu Electricity Company. Overall, in the last two days the group’s market cap has increased by Rs. 56,250 crore has increased.

Meanwhile, the Adani group has termed the allegations of irregularities in coal supply made in a report by the ‘Financial Times’ as false and baseless. An Adani Group spokesperson said the coal quality was independently tested at the loading and discharge points. Customs authorities and Tamil Nadu Generation and Distribution Company (TANGEDCO) officials also investigated it. He said, “Detailed quality testing was carried out by the supplied coal agencies at different locations. This makes it clear that the allegation of low quality coal supply is not only baseless and unwarranted, but also completely absurd.”



Adani Energy Solutions acquires Essar’s Mahan-Sipat transmission project

“Furthermore, the payment depends on the quality of coal supplied. This is determined through a testing process,” said an Adani Group spokesperson. According to the statement, the ship carrying the coal in December 2013 was not actually mentioned in the report as having brought coal from Indonesia before February 2014.

The Adani Group said, “These charges are based only on the difference between FOB (Free on Board) and CIF (Cost, Insurance, Freight) prices of coal. This does not include data on supply of low gross calorific value (GCV) coal. Using this, a An assumption has been made, which is completely baseless.”

Acquisition deals in country accelerate in April, led by Adani Group: Report

The group said that this is nothing but the investigation report of the Directorate of Revenue Information (DRI) has been manipulated and resurfaced. On the allegation of involvement of middlemen in the deal, the Adani group said, “Adani Global PTI Limited procures coal from people/companies/traders with requisite credentials and experience. This is because non-compliance with contractual obligations may result. Loss of coal to Adani. “Money and reputation are affected.”

Deven Choksi, Managing Director, DR Choksi Finserv said, “The market has become relatively ‘smart’. They assess the situation before taking a decision. In my view, the fundamentals of Adani Group companies are stronger than in 2014…”

Let us tell you that the market cap of Adani Group has increased by 56.6 percent in the last one year. This is better than the performance of the NSE Nifty, which has gained 23.3 percent during the same period.

Adani Defense & Aerospace signs agreement with IIT-Gandhinagar, company to work in defense sector with new technology

(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani group company.)


Leave a Comment