Adani Group, whose mostly debt-fuelled risky expansion doubled gross debt in four years, has nearly USD 2 billion worth of foreign currency bonds coming up for repayment in 2024, according to a presentation to investors.
The apples-to-airport conglomerate borrowed more than USD 10 billion in foreign currency bonds from group companies between July 2015 and 2022. Of this, bonds worth US$1.15 billion mature in 2020 and 2022.
There is no maturity in 2023, but three issuances – USD 650 million by ports arm APSEZ and renewable energy unit Adani Green Energy Ltd (USD 750 million and USD 500 million) – are due for payment in 2024.
The Adani group management, including group chief financial officer Jugshinder Singh, held roadshows in Singapore and Hong Kong last month to reassure investors that the company’s finances were under control. These are to be extended to Dubai, London and the US from March 7 to March 15.
Executives told investors they will address upcoming debt maturities, including potentially using cash from operations and offering private placement notes. Adani Group’s gross debt is set to grow from Rs 1.11 lakh crore in 2019 to Rs 2.21 lakh crore in 2023, according to a presentation made to investors last month. After adding cash, the net debt in 2023 was Rs 1.89 lakh crore. There is no foreign currency bond maturity in 2025, but repayment of USD 1 billion is due in 2026.
Hindenburg Research, in a January 24 report, accused the Adani group of ‘brazen stock manipulation and accounting fraud’ and of using several offshore shell companies to prop up stock prices.
The group has denied all the allegations, calling them ‘malicious’, ‘baseless’ and a ‘planned attack on India’.
The report triggered selling of Rs 12.06 lakh crore in 10 listed firms of the Adani group. This was almost equal to the market capitalization of Tata Consultancy Services (TCS) – India’s second most valuable company.
The group’s founding chairman, Gautam Adani, a 60-year-old first-generation entrepreneur, lost USD 80.6 billion in wealth, mainly based on valuations of his stake in group companies. After the Hindenburg Report, his ranking came down to number 34.
However, a rally in all the group’s stocks in the last three trading sessions has brought it back to number 24 with a net worth of nearly US$50 billion. He is, however, behind rival Mukesh Ambani, whom he overtook last year to become Asia’s richest and third-richest businessman in the world. Ambani is at number 11 with assets of $82.6 billion.
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