The flagship company of Asia’s richest person Gautam Adani is planning a maiden bond sale to individual investors, after the coal-to-ports conglomerate expanded in the past few years into everything from data centers to cement, media and alumina.
Adani Enterprises Ltd has proposed a 10-billion-rupee ($121 million) public sale of bonds, according to a statement from Care Ratings, which assigned the potential issuance an A+ score.
The Indian tycoon has been on an acquisition spree this year across sectors as he rapidly seeks to diversify. The Adani conglomerate, which owns India’s largest private-sector port, has been getting into areas beyond its traditional mainstay businesses of ports and power plants.
ETMarkets.com
Credit markets have signaled some concerns. Adani Ports’ seven dollar-denominated notes have lost about 14% on average so far this year, while Adani Electricity Mumbai’s 2030 securities have retreated about 17%. That compares to a 14.3% decline for Indian dollar debt overall.
Adani Enterprises shares have declined 15% after hitting a record high last month.
The newest borrowing plan comes just a few weeks after research firm CreditSights stuck to its main conclusion in a report that alleged billionaire Adani’s empire is “deeply overleveraged,” even as it corrected some figures for profit and debt at certain units while also dialing back its language.
The Adani Group has disputed CreditSights’ assessments, saying it’s improved its debt metrics over the past decade, with the leverage ratios of its portfolio companies now “healthy” and in line with their respective industries.
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