The flagship firm of Asia's richest man, Gautam Adani, has been planning a maiden bond sale to individual investors, the decision was taken following the coal-to-ports conglomerate's expansion in the past few years, from data centres to cement, media, and alumina.
New Delhi: The flagship firm of Asia’s richest man, Gautam Adani, has been planning a maiden bond sale to individual investors. The decision was taken following the coal-to-ports conglomerate’s expansion in the past few years, from data centres to cement, media, and alumina.
According to a statement from Care Ratings, which gave the potential issuance an A+ rating, Adani Enterprises Ltd. has proposed a 10-billion-rupee ($121 million) public sale of bonds.
In an effort to quickly diversify, the Indian tycoon has been on an acquisition binge across industries this year. The Adani company has the distinction of owning the biggest port in India’s private sector and has expanded outside of its traditional core sectors of ports and power plants.
The shares of Adani Enterprises have dropped 15% after hitting a record high last month.
Some concerns have been raised by the credit markets. In comparison to the 2030 securities of Adani Electricity Mumbai, the seven-dollar notes of Adani Ports have decreased by an average of about 14% so far this year. In contrast, there was a 14.3% overall decline in Indian dollar debt.
The newest borrowing method was used soon after research firm CreditSights upheld the main finding of a study that said that purported billionaire Adani’s empire is “significantly overleveraged.”
The Adani Group denies CreditSights’ findings, asserting that it has strengthened its debt metrics over the past 10 years and that the leverage ratios of its portfolio companies have decreased.