Adani Enterprises climbs 4% as firm applies for loan for $ 16 bn coal project

NEW DELHI: Shares of Adani Enterprises shot up over 4 per cent in Tuesday’s trade after Australia's Resources Minister on Monday said the company had applied for financing from an Australian infrastructure fund to build a rail line that is part of a $16 billion coal project in Queensland.

Following the report, the stock surged 4.2 per cent to hit a high of Rs 98 on BSE. Even since it started work on the Carmichael development over five years ago, Adani has battled opposition from green groups who say it would contribute to global warming.

Financing from the A$5 billion Northern Australian Infrastructure Facility ( NAIF) would offer a boost to Adani after some major banks said they would not participate in the controversial coal project, the report added.

At the prevailing market price, the Adani Enterprises stock was trading at 33.37 times its trailing 12-month earnings per share and 0.79 times its book value.

"(NAIF) is considering Adani's proposal at the moment," Matthew Canavan told Reuters in an interview in Tokyo on Monday, when asked if the Indian company had approached the infrastructure fund.