Adani Enterprises zoomed over 12 percent intraday on Tuesday as investors reacted positively to the development around its Australian coal project.
Adani Enterprises said it had reached an agreement with Australia's Queensland state on royalty payments for its Carmichael coal project, putting the $10 billion project back on track.
The company will now consider making a final investment decision at its next board meeting.
Earlier, there were reports that the Group may walk away from its $16.5 billion Carmichael coal project if the confusion regarding royalties payments is not resolved by the Queensland state government, Bloomberg News reported, citing Australian Federal Resources Minister Matthew Canavan.
Adani’s approval for the project “is contingent on the Queensland government coming to a decision on their royalties policy,” Canavan told Bloomberg. “You can’t expect Adani to make a multi-billion dollar decision if they don’t know what tax they will pay. The ball is now in the Queensland government’s court,” Canavan added.
The development had sent the stock crashing on the bourses, erasing a huge chunk of investors’ wealth.
However, the agreement by Adani Group will put things back in perspective and help it carry on with the plans.
The stock rose over 21 percent in the past one month, while its three-day gain stood at 3 percent. At 13:45 hrs, Adani Enterprises was quoting at Rs 119.95, up Rs 8.65, or 7.77 percent on the BSE. It touched an intraday high of Rs 124.75 and an intraday low of Rs 110.05.
(With inputs from Reuters)
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