Adani Group The market capitalization (market cap) of listed companies of India increased by Rs 11,300 crore on Wednesday and again reached $ 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 Tamil Nadu Power Company. According to stock market data, the market capitalization of the group’s listed companies increased by Rs 11,300 crore on Wednesday. Overall, the market capitalization of the group has increased by Rs 56,250 crore in the last two days. The market capitalization increased on the day after a report in London-based newspaper ‘Financial Times’ raised suspicions of wrongdoing at the group.
Denied allegations
Citing documents from The George Soros-backed Organized Crime and Corruption Reporting Project (OCCRP), the newspaper report suspects Adani Group of fraud in 2013 by selling low-grade coal as high-priced fuel. However, Adani Group denied all the allegations. But opposition leaders, including former Congress president Rahul Gandhi, cited the report published in the newspaper and demanded a Joint Parliamentary Committee inquiry into the alleged wrongdoing. A spokesperson for the group said the quality of the coal was independently tested at loading and unloading sites. Besides, customs officials and officials of Tamil Nadu Generation and Distribution Company (TANGEDCO) also investigated it.
The allegations are baseless and absurd
He said, “Detailed quality checks were conducted at various locations by the agencies on the coal supplied. This clearly shows that the allegation of supply of low quality coal is not only baseless and unjustified but also completely absurd.” The spokesperson said, “Furthermore, the payment depends on the quality of the coal supplied. This is determined through the testing process.” According to the statement, the ship which was cited in the report to have carried coal in December 2013 was in fact not used to bring coal from Indonesia before February 2014. It said, “These allegations are based only on the difference in the FOB (Free on Board) and CIF (Cost, Insurance, Freight) price of coal. An estimate has been made using data for the supply of coal with low Gross Calorific Value (GCV) which is completely baseless.”
Allegations of involvement of middlemen in the deal
“Not only are both the prices not comparable but the purchase price is also not relevant as the contract for supply was awarded at a fixed price,” the statement said. In this, in case of price going up or down, it had to be borne by the supplier. The group said that this was nothing but the investigation report of the Directorate of Revenue Intelligence (DRI) was brought to the fore again by manipulating the facts. Is. On the allegation of involvement of middlemen in the deal, the group said, “Adani Global Pte Ltd procures coal from people/companies/traders with necessary credentials and experience. The reason for this is that non-fulfillment of contractual obligations impacts Adani’s finances and reputation.
Big jump in capitalization of companies
It is clear that this report had no impact on the shares of Adani Group. DR Choksey “The market has become relatively ‘smarter’,” said Deven Choksey, managing director of Finserv. They assess the situation before giving their decision. In my view, the fundamentals of Adani Group companies are much stronger than they were in 2014.” The group’s market capitalization has increased 56.6 percent in the last one year. This is better than the performance of NSE Nifty which has gained 23.3 per cent during the same period.
Latest Business News