Robust capex leads to surge in Adani Group's gross assets
Adani Group's gross assets swelled by ₹75,277 crore in the first half of this fiscal year as the diversified conglomerate accelerated capital spending across projects, said people close to the matter. Gross assets are on track to reach a record ₹1.2 lakh crore by March-end, the people said.
The surge in assets sparked a 7% or ₹16,882 crore increase in gross debt in the fiscal first half to ₹2,58,276 crore. The group's liquidity to service debt has fallen to 28 months as of September-end, from more than 30 months at the end of March.
The Ahmedabad-based conglomerate has been battling turmoil over the past two days with promoter Gautam Adani, his nephew Sagar Adani, along with six others indicted by the US Department of Justice. The charges include securities and wire fraud, alleging the group lied to US investors about its anti-bribery practices while engaging in widespread corruption.
Following the indictment, S&P has resived the outlook on three Adani Group companies to 'negative,' citing short-term debt of about $2 billion, primarily tied to project loans at its green energy unit. This follows the cancellation of a $600 million bond sale earlier after the indictment. Proceeds of the sale were intended to repay foreign currency loans.
This fiscal, the group made fresh capital expenditure in companies including Adani Green Energy (AGEL), Adani Energy Solutions (AESL) and its copper plant under Adani Enterprises which is slated to open by February, said one of the persons cited above.
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