Shares of Adani Group recouped most of their losses on May 22 following reports earlier in the day that the group was trading cleaner, more expensive coal for cheaper coal under its contract with the state power company.
Financial Times said it accessed evidence collected by the Organized Crime and Corruption Reporting Project (OCCRP), that supported its allegations of the Adani group artificially inflating coal prices.
Adani Group Coal purchase
Shares of Adani Ports also increased by 1.5% but fell marginally after May 22. Financial Times reported in January 2014 that Adani Group purchased coal from Indonesia, which according to some sources costs 3,500 calories per kilogram. bills. Adani Group buys coal from Indonesian miner PT Jhonlin, known for its poor quality, at $28 per tonne.
The Financial Times reported that the highest quality coal produced by the Manufacturing and Distribution Company (Tangedco) has 6,000 calories per kilogram. Coal prices averaged $86 per ton, representing a 207% price increase. Financial Times reported that Adani Group and its partners made a profit of $46 per ton on 22 shipments totaling $70 million, including transportation, handling and shipping costs.
Adani Group denied allegations
Adani Group denied these allegations. “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,” said an Adani Group spokesperson to the Financial Times.
On January 24, 2023, short-selling agency Hindenburg Research published a report accusing it of failing to meet minimum standards of public participation; This report does not indicate market influence or control of stock prices. The group collapsed and Adani Enterprises’ Rs 20,000-crore IPO was cancelled. However, Adani Group has repeatedly denied these allegations.
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