India’s Adani group is up against a big obstacle as it gets ready to pay back about USD 2 billion in foreign currency bonds in 2024. With nearly USD 10 billion borrowed in foreign currency bonds between July 2015 and 2022 across its firms, the group’s gross debt doubled in four years as a result of its primarily debt-fueled fast expansion. With three bond issuances totaling USD 1.9 billion due for payment in 2024, the corporation borrowed USD 1.15 billion in bonds with maturity dates in 2020 and 2022. From Rs. 1.11 lakh crore in 2019 to Rs. 2.21 lakh crore in 2023, Adani’s gross debt has increased.
Executives at Adani are thinking about selling private placement notes and using operating cash to pay down looming debt maturities. Adani group officials, including group chief financial officer Jugeshinder Singh, undertook roadshows in Singapore and Hong Kong last month in an effort to reassure investors that the company’s finances are in order. From March 7 through March 15, these initiatives will continue in Dubai, London, and the US.
In addition to the impending loan payments, Adani has also had to deal with the fallout from a damning report by a US short seller, which reduced the market value of its listed companies by USD 135 billion. Adani’s 10 listed companies had a sell-off of Rs 12.06 lakh crore after Hindenburg Research accused the company of “brazen stock manipulation and accounting fraud.” This amount is almost equal to the market capitalization of Tata Consultancy Services, India’s second most valuable corporation. Gautam Adani, the founding chairman of the company, lost USD 80.6 billion in wealth and fell to No. 34 on the list of the richest businessmen in the world.
The group has started to take a more cautious stance, preferring moderate growth versus the rapid boom of recent years. It has previously committed to returning more debt after canceling a Rs 7,000 crore coal acquisition and declining to compete for a stake in the state-backed energy trading company PTC. It has also paid back some debt and cut expenses. Adani has had an increase in all group stock during the past three trading sessions, with Gautam Adani‘s ranking moving up to No. 24 and his net worth approaching USD 50 billion. He still trails rival Mukesh Ambani, who is rated No. 11 and has $82.6 billion in wealth.
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