A subsidiary of Adani Enterprises Ltd. (AEL) will operate its coal washeries, according to the company. As a result, shares of the group’s flagship stock rose by two percent in morning trading, becoming the second-largest gainer on the Nifty50 index.
At Rs 1,833.10, Adani Enterprises was trading 1.7 percent higher on the BSE. The stock’s 52-week high of 4,189.55 rupees remains distant. The multibagger stock has generated 1,193% returns over the past three years, but was pummelling in late January following the publication of a report by US short-seller Hindenburg Research.
The stock price closed on January 24 at Rs 3,442.75. The Hindenburg report, which was released after market hours and accused the conglomerate of stock manipulation, provoked a decline in Adani Group shares. The company denied the allegations but did little to halt the decline. The lowest price for Adani Enterprises was Rs 1,017.1 on February 3, a 70 percent decline from January 24’s closing price.
Adani Enterprises told exchanges on April 11, “The company has incorporated a WOS (Wholly-Owned Subsidiary) Pelma Collieries Ltd (PCL) on April 7, with an initial authorised share capital of Rs 10,00,000 and paid-up share capital of Rs 5,00,000,” it said in a regulatory filing on April 11.
According to the filing, the entity will design, construct, and operate coal washeries, including coal handling systems, as well as perform all incidental and ancillary tasks.
The business will commence operations in due time.
What is coal washing?
Coal washing, or coal preparation plant (CPP), is the process of removing impurities from coal. Water, mechanical techniques, gravity, and the difference in density between coal and its impurities—which are typically inorganic and more densely packed than coal—are utilised in the coal cleansing process.
Cleansed coal is more expensive than unwashed coal due to its extended combustion duration. US Department of Energy research indicates that the use of cleansed coal reduces carbon dioxide emissions by 11 percent.