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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
The group’s investments in existing and unrelated new businesses come with a high risk and could spiral out of control, the report says
Editor's note: Billionaire Gautam Adani’s debt-fuelled growth plans have made his group “deeply overleveraged”, which could spiral into a “massive debt trap” and default of one or more group companies, said financial research firm CreditSights in a report released on Tuesday. CreditSights is a unit of Fitch Group, which is the parent company of credit rating agency Fitch. “The group has been investing aggressively across both existing and new businesses, predominantly funded with debt, resulting in elevated leverage and solvency ratios. This has understandably caused concerns about the group as a whole, and what implications it could have on the group companies that are bond issuers,” the report noted. Even though CreditSights retained “market perform” recommendations on two of the group’s entities under its coverage—Adani Green Energy and Adani Ports and Special Economic Zone —shares of the two companies, along with those of its four listed companies, fell by up to 7% in early trade, even as the overall market remained positive. The report is a rare indictment of the group’s otherwise indomitable growth under Adani, the world’s fourth-richest person who has …
The group’s investments in existing and unrelated new businesses come with a high risk and could spiral out of control, the report says
Editor's note: Billionaire Gautam Adani’s debt-fuelled growth plans have made his group “deeply overleveraged”, which could spiral into a “massive debt trap” and default of one or more group companies, said financial research firm CreditSights in a report released on Tuesday. CreditSights is a unit of Fitch Group, which is the parent company of credit rating agency Fitch. “The group has been investing aggressively across both existing and new businesses, predominantly funded with debt, resulting in elevated leverage and solvency ratios. This has understandably caused concerns about the group as a whole, and what implications it could have on the group companies that are bond issuers,” the report noted. Even though CreditSights retained “market perform” recommendations on two of the group’s entities under its coverage—Adani Green Energy and Adani Ports and Special Economic Zone —shares of the two companies, along with those of its four listed companies, fell by up to 7% in early trade, even as the overall market remained positive. The report is a rare indictment of the group’s otherwise indomitable growth under Adani, the world’s fourth-richest person who has …
A regulatory easing could see the billionaire’s conglomerate move from running airports to owning an airline—an idea he is warming up to, with multiple options open.
While the Rs 9,000 crore promoter investment in Q1 brings a measure of reassurance, investors will still have to wait for Jio and retail to work through their challenges.
The FMCG major acquired the maker of Ching’s Secret to make the most of its high margins, but things didn’t go to plan. Two years and a few lessons later, TCPL is trying to change that.
A regulatory easing could see the billionaire’s conglomerate move from running airports to owning an airline—an idea he is warming up to, with multiple options open.
While the Rs 9,000 crore promoter investment in Q1 brings a measure of reassurance, investors will still have to wait for Jio and retail to work through their challenges.
The FMCG major acquired the maker of Ching’s Secret to make the most of its high margins, but things didn’t go to plan. Two years and a few lessons later, TCPL is trying to change that.
