Adani Group is planning to raise between Rs 30,000 and Rs 40,000 crore from retail and high-net-worth individual (HNI) investors over the next 3-4 years through non-convertible debentures (NCDs). This move aims to diversify the group’s funding sources and reduce reliance on loans from a limited set of lenders, including banks.
On Wednesday, Adani Enterprises Ltd launched its first public issue of secured NCDs worth Rs 400 crore, offering tenors of two to five years and an annual yield between 9.25% and 9.90%. The issue was fully subscribed on its opening day. Similar public NCD issues are planned for other group entities to further reduce the group’s dependency on rupee loans.
Domestic lenders had Rs 88,100 crore of exposure to Adani Group companies in the form of long-term and working capital loans as of March 2024. Adani Enterprises, which incubates businesses for the group, saw the total debt rise from Rs 38,320 crore in FY23 to Rs 50,124 crore in FY24 while cash in books improved from Rs 5,539 crore to Rs 8,523 crore.
This will improve public goodwill and, therefore, retail participation in its equity base. The group has been mainly dependent on foreign debt markets and local banks for its financing. As of June 2024, Adani Group gross debt stood at Rs 2.41 lakh crore of which 24.8% was held as cash reserve equivalent to providing liquidity cover for 30 months of debt payments.
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Source: Moneycontrol
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