Adani Group’s Market Cap Reaches USD 200 Billion Again as Company Counters Coal Invoicing Allegations

In Mumbai, the Adani Group’s market capitalization soared past the USD 200 billion mark (approximately Rs 16.9 lakh crore) on Wednesday, propelled by a rise of Rs 11,300 crore in its listed firms. This surge reflects renewed investor confidence in the conglomerate, which has vehemently denied any misconduct regarding coal supply to the Tamil Nadu power company.

With Wednesday’s increase of Rs 11,300 crore, the Adani Group, known for its diverse portfolio from apples to airports, has witnessed a market capitalization surge of Rs 56,250 crore over the past two trading sessions, as per stock exchange data.  Adani Group’s

 

This rise comes amid allegations reported by the London-based Financial Times, referencing documents from the George Soros-backed Organized Crime and Corruption Reporting Project (OCCRP). The report alleges that the Adani Group engaged in fraudulent activities by purportedly selling low-grade coal as high-value fuel back in 2013.  Adani Group’s

 

“Completely absurd,” declared the Adani Group in response to the allegations, firmly denying any wrongdoing. The news report prompted opposition leaders, including former Congress president Rahul Gandhi, to call for a probe by a joint parliamentary committee into the alleged misconduct.  Adani Group’s

 

A spokesperson for the group emphasized that the coal’s quality underwent rigorous independent testing at various stages, including at the point of loading and discharge, by customs authorities, and officials from the Tamil Nadu Generation and Distribution Company (TANGEDCO).  Adani Group’s

 

“Given the extensive quality check process conducted by multiple agencies, the allegation of supplying low-quality coal is baseless, unfair, and completely absurd,” the spokesperson asserted. They added that payment was contingent upon the coal meeting specified quality standards, which were indeed met based on testing results within permissible limits.

 

Addressing specific points raised in the report, the group clarified that the vessel mentioned did not transport coal from Indonesia until February 2014, contrary to the December 2013 claim. They dismissed the comparison between Free on Board (FOB) and Cost, Insurance, and Freight (CIF) prices as irrelevant, emphasizing that the procurement price was fixed under a contract where the supplier bore both upsides and downsides.

 

The group also dismissed allusions to a Directorate of Revenue Intelligence (DRI) inquiry as a rehash of old accusations.

The Adani Group addressed inquiries into allegations of overvaluation of Indonesian coal imports, clarifying that the investigation was initiated against 40 companies, including Adani’s, but no further communication or requests for additional documents have been made by the Directorate of Revenue Intelligence (DRI) since the submission of requested details over four years ago.  Adani Group’s

 

Regarding allegations of middlemen involvement in deals, the group asserted that Adani Global Pte Ltd sources coal from entities with requisite credentials and experience to avoid any potential contractual breaches, which could have financial and reputational repercussions.

 

Remarkably, despite the news report, Adani Group stocks remained unaffected. Deven Choksey, managing director of DRChoksey Finserv, attributed this to the market’s discernment of the situation before forming judgments. He expressed confidence in the group’s fundamentals, suggesting that they are stronger now than in 2014 and are likely to further strengthen by 2034.  Adani Group’s

 

In the past year, the group’s market capitalization has surged by 56.6%, surpassing the broader market index Nifty, which recorded a gain of 23.3% over the same period.  Adani Group’s