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| In The Past One Year, The Group's Market Capitalization Has Increased By 56.6 Per Cent Outperforming The Broader Market Nifty, Which Has Gained 23.3 Per Cent During The Same Period. (Photo: Bloomberg) |
On Wednesday, Adani Group's market capitalization surged back to $200 billion (Rs 16.9 lakh crore) as its listed companies gained Rs 11,300 crore, reflecting investor confidence after the company refuted coal invoicing allegations. This rise contributed to a total market cap increase of Rs 56,250 crore over the past two trading sessions, according to stock exchange data.
The boost came amid a report by the Financial Times, based on documents from the George Soros-backed Organized Crime and Corruption Reporting Project (OCCRP), alleging that the Adani Group engaged in fraud by selling low-grade coal as high-value fuel in 2013. Despite these claims, Adani Group denied all accusations. Opposition leaders, including former Congress president Rahul Gandhi, called for a joint parliamentary committee probe into the alleged misconduct.
A spokesperson for Adani Group emphasized that the coal's quality was independently verified at multiple points by customs authorities and Tamil Nadu Generation and Distribution Company (Tangedco) officials. They argued that the allegations were baseless, given the extensive quality checks and that payment was contingent on these tests. Additionally, the company clarified that the vessel mentioned in the report had not been used for coal shipments from Indonesia until February 2014, countering the fraud claims.
The spokesperson dismissed the accusations as based on incorrect comparisons of FOB and CIF coal prices, explaining that the procurement was under a fixed-price contract. The company also referenced an old Directorate of Revenue Intelligence (DRI) inquiry into coal import overvaluation, noting that Adani had provided all requested documents over four years ago and had not received any further inquiries or objections from the DRI.
Regarding allegations of middlemen involvement, the group stated that Adani Global Pte Ltd procures coal from reputable sources to avoid any contractual risks. The news report did not affect Adani Group's stock prices, which market analyst Deven Choksey attributed to the market's mature assessment of the situation and the strong fundamentals of Adani Group companies.
Over the past year, the group's market capitalization has surged by 56.6%, significantly outperforming the Nifty index, which has seen a 23.3% increase in the same period. Choksey expressed confidence in the group's continued growth, predicting an even stronger performance by 2034.
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