Adani Group's market capitalization regained USD 200 billion (Rs 16.9 lakh crore) as its listed enterprises gained Rs 11,300 crore as investors put their trust in the company's denial of any wrongdoing in coal delivery to the Tamil Nadu power company.
The apples-to-airport conglomerate's market capitalization increased by Rs 11,300 crore on Wednesday, bringing it to Rs 56,250 crore during the past two trading days, according to stock exchange statistics.
The gain occurred on the same day that the London-based Financial Times reported, using papers from George Soros's-backed Organized Crime and Corruption Reporting Project (OCCRP), that the Adani business committed fraud by selling low-grade coal as high-value fuel in 2013.
While the Adani group rejected all charges, the news article prompted opposition leaders, including former Congress president Rahul Gandhi, to call for a joint parliamentary committee to investigate the alleged malfeasance.
A spokeswoman for the group stated that the coal's quality was independently checked at the loading and discharge points, as well as by customs authorities and Tamil Nadu Generation and Distribution Company (Tangedco) personnel. "With the supplied coal having passed such an elaborate quality check process by multiple agencies at multiple points, clearly the allegation of supply of low-quality coal is not only baseless and unfair but completely absurd."
The representative said that tests for the quality of the questioned consignment had produced findings within allowable bounds. "Moreover, the payment is dependent on the quality of coal supplied, which is determined through the testing process," the spokesman stated.
The report continued by stating that, prior to February 2014, the ship mentioned in the report as having transported coal from Indonesia had not been utilized for coal transportation.
"The accusations are unfounded guesswork and assumptions that are based only on the disparity between the FOB and CIF prices of coal, projecting it to the supply of low gross calorific value (GCV) coal.
The order of supply was a fixed price contract, meaning the provider would bear both the upside and the downside, thus not only are the two prices not comparable, but the procurement price itself is also irrelevant," it stated.
The organization described the report to the DRI inquiry as a rehash of previous charges.
It added that 40 businesses were the target of an investigation investigating claims that Indonesian coal imports were overvalued. "More than four years ago, the Adani firms provided the DRI with the information they requested. The DRI hasn't requested any further papers since then. Additionally, the DRI has not expressed any shortcomings or objections."
Regarding claims that intermediaries were engaged in the transaction, the organization stated, "Adani Global Pte Ltd sources coal from individuals, businesses, and merchants that meet the necessary qualifications and experience requirements. This is due to the fact that Adani's supplier reputation and finances might suffer if contractual commitments are not fulfilled."
It seems that the study had no effect on the stocks of the Adani group.
"The markets are now comparatively more intelligent. Before making a decision, they consider the whole context," DRChoksey FInserv managing director Deven Choksey stated. "In my point of view, fundamentals of Adani group companies are far stronger than what they were in 2014 and the group will emerge even stronger in 2034."
Over the last year, the market capitalization of Adani group has risen by 56.6%, surpassing the gains of the Nifty, the wider market, which has climbed by 23.3%.
