Adani Group planning to cut short its capital spending plans: Report

(Reuters) – India’s Adani Group plans to trim its capital spending plans, newspaper Mint reported on Monday citing people close to the development, days after the conglomerate’s flagship firm called off a $2.5 billion share sale.

While providing more collateral in the form of stock pledges to lenders, the group may moderate its capex plans in some of its businesses, the newspaper reported.

Adani Group did not immediately respond to a Reuters request for comment outside of business hours.

The newspaper said the company might look at 16-18 months for growth in certain businesses, instead of a 12-month target, adding that Adani would return to its usual pace of growth once normalcy returns.

The group will use alternative funding channels from internal accruals, promoter equity funding and private placements to fund projects, Mint said.

Additionally, Adani Group’s domestic lenders do not plan to cut off the conglomerate from utilising sanctioned but unused credit lines for fears it could backfire and lead to defaults, Mint said in a separate report, citing bankers.

Shares of Adani Group companies have lost more than half their market value, in excess of $100 billion combined, since U.S. short-seller Hindenburg Research raised questions in January about the group’s debt levels and use of tax havens.

Soon after, group firm Adani Enterprises

called off the share sale.

 

(Reporting by Jahnavi Nidumolu in Bengaluru; editing by Jason Neely)

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