Three months after the devastating Hindenburg report had been released, the crisis-hit Adani Group's lender base expanded to 25 from 18, and the company's total debt rose at Rs 2.27 lakh crore at the end of FY23, according to sources familiar with the matter. Adani Group's financiers include two American banks, three European banks, and three Japanese lenders.
"The majority global banks, including Mitsubishi UFJ, Sumitomo Mitsui, Mizuho, Standard Chartered, Barclays, and Deutsche Bank, have expressed their confidence in the group." According to our bankers' careful estimates, the worth of our total assets is Rs 575,000 crore," an insider told ETMarkets.
The company's management previously said that there is no meaningful risk associated with refinancing or short-term liquidity requirement because there is no major debt due outside the credit limit in the near term.
International and local rating agencies have maintained ratings across the portfolio since the publication of the US short-seller Hindenburg report, which accused "brazen stock manipulation and financial fraud" in addition to raising worries regarding billionaire Gautam Adani's debt-fueled ambitions.
According to company sources, 39% of the debt of the Ahmedabad-based apples-to-airport business is in bonds, 29% is funded by global banks, and the rest 32% is funded through PSU, private banks, and NBFCs.
Earlier in February, state-owned the State Bank of India said that its whole exposure to the Adani Group was 0.9% of its total loan book and that the multinational corporation's ability to fulfil its financial commitments didn't present any issues.
LIC increased its interest in four of the ten Adani entities in the March quarter: Adani Enterprises, Adani Transmission, Adani Green, and Adani Total Gas.
"Our dollar debt is fully hedged, and the estimated price is 5/6%." "The recent ECB interest rate hikes have had little impact on debts cost and debt servicing," a firm official stated, claiming that the organization will increase its operational effectiveness and reduce debt.
According to value experts Aswath Damodaran's calculations, the Adani Group is carrying three times more debt as it should. According to the finance expert, the organization is over-levered, but this is an unethical company execution, not a scam, as stated in the Hindenburg report.
The overall market value of all ten Adani equities decreased by half to Rs 9.56 lakh crore since the release of the Hindenburg report in late January
