Adani Group’s debt to go up to Rs 2.6 trillion

The analysts have pointed out that while debt levels may have gone up, the cash flows for the group have also grown steadily, with more assets coming on stream and becoming operational.

The recent acquisition by the Adani Group of cement maker Holcim’s India businesses is expected to add another Rs 40,000 crore to the conglomerate’s debt, taking it to approximately Rs 2.6 trillion, an analysis by Credit Suisse showed.

The Gautam Adani-led Group has seen its debt levels increase over the past five years from Rs 1 trillion to Rs 2.2 trillion, fueled by the expansion of the ports business, investments in green energy, the acquisition of transmission business, and venturing into newer areas (Adani Enterprises) such as airports, roads and data centres. Analysts at Credit Suisse noted that while the gross debt levels may have risen, the group has managed to diversify its debt in favour of bonds and financial institution (FI) lenders with longer maturity tenors.