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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 conglomerate’s debt rose 40% in just one year. Yet, lenders remain confident in its long-gestation projects.
Editor's note: The Adani group positions itself as a champion of new infrastructure. Undeterred by the costs involved, it is happy to rack up debt with this goal in mind. The Ahmedabad-based group’s consolidated borrowings rose about 40% by the end of the 2021-22 at Rs 2.2 lakh crore, as against Rs 1.57 lakh crore in 2020-21. This makes it India’s fourth largest corporate borrower, behind the Tata group (Rs 2.89 lakh crore), Reliance Industries (Rs 2.66 lakh crore) and the Aditya Birla Group (Rs 2.29 lakh crore). We wrote in September last year about the Adani group’s mountain of debt and how as its infrastructure ambitions grew, the conglomerate loaded up on bonds. Since then, investors and bankers have continued to gravitate towards it. Its unblemished repayment record, strong share capital base, rich cash flow and the ability to execute projects make it a favourite of local and global bankers alike. “A lot of the credit goes to Rajiv Nayar, who was with Citibank for 30 years before joining Adani as its chief financial officer. He has a great reputation with …
The conglomerate’s debt rose 40% in just one year. Yet, lenders remain confident in its long-gestation projects.
Editor's note: The Adani group positions itself as a champion of new infrastructure. Undeterred by the costs involved, it is happy to rack up debt with this goal in mind. The Ahmedabad-based group’s consolidated borrowings rose about 40% by the end of the 2021-22 at Rs 2.2 lakh crore, as against Rs 1.57 lakh crore in 2020-21. This makes it India’s fourth largest corporate borrower, behind the Tata group (Rs 2.89 lakh crore), Reliance Industries (Rs 2.66 lakh crore) and the Aditya Birla Group (Rs 2.29 lakh crore). We wrote in September last year about the Adani group’s mountain of debt and how as its infrastructure ambitions grew, the conglomerate loaded up on bonds. Since then, investors and bankers have continued to gravitate towards it. Its unblemished repayment record, strong share capital base, rich cash flow and the ability to execute projects make it a favourite of local and global bankers alike. “A lot of the credit goes to Rajiv Nayar, who was with Citibank for 30 years before joining Adani as its chief financial officer. He has a great reputation with …
The Sprng Energy acquisition gives Aditya Birla Renewables instant scale and diversification. But high leverage, execution delays and margin pressures point to a tough test ahead.
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.
After a strong listing, Vedanta Aluminium Metal is running into some headwinds. Aluminium prices are easing, but the sharper challenge is rising competition from Kumar Mangalam Birla and Gautam Adani.
The Sprng Energy acquisition gives Aditya Birla Renewables instant scale and diversification. But high leverage, execution delays and margin pressures point to a tough test ahead.
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.
After a strong listing, Vedanta Aluminium Metal is running into some headwinds. Aluminium prices are easing, but the sharper challenge is rising competition from Kumar Mangalam Birla and Gautam Adani.
