Adani Enterprises stock soars over 7% as investors cheer co's consent to Australian coal mining project

Shares of Adani Enterprises rose over 6 percent on BSE, after invetors cheered the company's investment approval for the Carmichael mine and rail projects in Queensland.

Intra-day, the stock surged over 7 percent to touch a high of 126.10.

At 12:50 pm , Adani Enterprises shares were traded at Rs 124.70, up 6 percent from previous close.

The counter has witnessed hectic trading activity, with over 33 lakh shares changing hands on BSE so far, as against two-week average volume of 16.70 lakh shares on BSE.

 Adani Enterprises stock soars over 7% as investors cheer cos consent to Australian coal mining project


The stock has been attracting investors' attention over the past one month, rising nearly 4 percent as against 5 percent gain in Sensex. Further, the counter has outperformed the benchmark index in the last quarter, surging over 20 percent compared with 8 percent rise in Sensex.

"The project has Final Investment Decision approval, which marks the official start of one of the largest single infrastructure and job-creating developments in Australia's recent history," Adani Chairman Gautam Adani said in a statement.

The company has said the project, at an initial cost of $4 billion, would pay billions of dollars in royalties and taxes, create jobs and export coal to India help bring electricity to rural regions.

The Australian project is expected to generate 10,000 direct and indirect jobs, while pre-construction work likely to start in next few months.

The Carmichael coal mine project has been dogged by delays, facing opposition from several environmentalist groups as well as members of the indigenous community.

Green groups are opposed to the project, saying carbon emitting fossil fuels should be phased out to tackle climate change.

The Adani group entered Australia in 2010 with the purchase of the greenfield Carmichael coal mine in the Galilee Basin in central Queensland, and the Abbot Point port near Bowen in the north.

With agency inputs

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Updated Date: Jun 06, 2017 12:54:21 IST