Adani Group called the allegations of irregularities in coal supply baseless, there was a big jump in market cap -Newsops

Mumbai:

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

Meanwhile, the Adani Group has termed the allegations of irregularities in coal supply made in the ‘Financial Times’ report as false and baseless. An Adani Group spokesperson said that the quality of coal was independently tested at the loading and discharge points. Officials of the Customs Authority and Tamil Nadu Generation and Distribution Company (Tangedco) also investigated it. He said, “The agencies that supplied the coal did detailed quality testing at different places. It is clear from this that the allegation of supply of low quality coal is not only baseless and unfair, but also completely absurd.”

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An Adani Group spokesperson said, “Furthermore, the payment depends on the quality of the coal supplied. This is determined through a testing process.” According to the statement, the ship that was cited in the report as carrying coal in December 2013 was in fact not used to bring coal from Indonesia before February 2014.

Adani Group said, “These allegations are based only on the difference in FOB (free on board) and CIF (cost, insurance, freight) price of coal. An estimate has been made using data for supply of coal with low gross calorific value (GCV), which is completely baseless.”

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The group said that this is nothing but a twisted version of the Directorate of Revenue Intelligence (DRI) investigation report and brought it to the fore again. On the allegations of involvement of middlemen in the deal, the Adani Group said, “Adani Global PTI Limited procures coal from people/companies/traders with the necessary credibility and experience. The reason for this is that non-fulfillment of contract-based obligations affects Adani’s finances and reputation.”

Deven Choksey, Managing Director, DR Choksey Finserv, said, “The market has become relatively ‘smart’. They assess the situation before giving their decision. In my view, the fundamentals of Adani Group companies are much 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 NSE Nifty, which has increased by 23.3 percent during the same period.

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