The Adani Group, known for its rapid expansion mostly fueled by debt, is facing the repayment of nearly $2 billion worth of foreign-currency bonds in 2024, as reported in a presentation made to investors by the conglomerate.
Over the period between July 2015 and 2022, Adani Group borrowed over $10 billion in foreign currency bonds across various companies under the conglomerate. While $1.15 billion of bonds matured in 2020 and 2022, no maturities are expected in 2023.
APSEZ and renewable energy unit Adani Green Energy Ltd are expected to make three bond issuances worth $650 million, $750 million, and $500 million, all due for payment in 2024.
The management of the Adani group, led by CFO Jugeshinder Singh, recently held investor meetings in Singapore and Hong Kong to assure them that the company’s finances are stable.
These meetings will also be held in Dubai, London, and the US from March 7 to 15. The executives informed investors that they plan to address upcoming debt obligations by possibly issuing private placement notes and using operational cash.
Adani Group’s gross debt
The presentation made to investors last month revealed that the Adani group’s gross debt has increased from Rs 1.11 lakh crore in 2019 to Rs 2.21 lakh crore in 2023. However, the net debt, including cash, was Rs 1.89 lakh crore in 2023. The company has no foreign currency bond maturities in 2025, but it has to repay USD 1 billion in 2026.
The Adani group denies all allegations of fraud and manipulation made by Hindenburg Research in a report published on January 24. They describe the accusations as “malicious,” “baseless,” and a “calculated attack on India.”
Following the release of the Hindenburg Research report, there was a massive sell-off of Rs 12.06 lakh crore in the Adani group’s ten listed companies. This sell-off was almost equivalent to the market capitalisation of Tata Consultancy Services (TCS), India’s second most valuable company.
As a result, the founder chairman of the group, Gautam Adani, a first-generation entrepreneur, lost USD 80.6 billion in wealth, which was primarily based on the value of his holdings in group companies. Before the Hindenburg report, he was worth USD 120 billion, making him the world’s third-richest and Asia’s wealthiest businessman. However, his ranking fell to No.34 after the report.
In the last three trading sessions, however, there has been an increase in the stock prices of all group companies. This has led to Adani’s return to No.24 with a net worth of nearly USD 50 billion.
However, he still trails behind his rival Mukesh Ambani, whom he had overtaken last year to become Asia’s richest and the world’s third-wealthiest businessman. Ambani is currently ranked at No.11 with USD 82.6 billion in wealth.