Adani group seeing strong investor interest on robust performance

The Adani Group is once again rallying support for its fundraising plans, but it is on a much firmer basis with the group companies, which have already reported quarterly and annual results, showing solid performance and growth. Sources indicated that foreign and Indian institutions are meeting officials of the Adani Group who are interested in investing in companies.

Another significant development is that Indian banks have also expressed their willingness to increase their exposure to the Adani Group. Adani Enterprises and Adani Transmission plan to raise Rs 21,000 crore through qualified institutional placements. People familiar with the developments said that local mutual funds and even private equity firms have sent sensitivities in recent weeks to participate in the release. Hiring is expected to take place later in the year after shareholder approval in June. The group is also awaiting completion of the investigation by the Securities and Exchange Board of India (SEBI) and submission of the initial report in August.

At the Jefferies India Forum on Thursday, where several companies of the Adani Group were present, officials are understood to have shed light on the group’s performance and the way forward. Sources said after Rajeev Jain recently spoke to GQG Partners about increasing his company’s stake in the group, investor interest has increased.

How did the group companies perform?

It is estimated that the group’s total debt as a whole fell to about $21 billion at the end of March, down $1.6 billion from the end of December and net debt at $25 billion.

Adani Enterprises, the pioneer and new business incubator, ended its fiscal year 23 on a high note with consolidated net profit of Rs.2,473 crore as against Rs.777 crore a year earlier on revenue of Rs.1.37 crore as compared to Rs.69,420 crore a year earlier. With all its chipsets working fine. Its total debt fell 6.6 percent year on year to ₹38,320 crore at the end of the year. Promoter Group’s debt also fell by 15.6 per cent year on year to Rs.10,544 crore.

Another flagship company in the group, Adani Green Energy saw a 72 per cent increase in net profit at ₹3,192 crore while revenue increased by 54 per cent to ₹5,825 crore. The company reduced its total debt to ₹47,424 crore at the end of March from ₹48,171 crore, a year earlier. During the year, it paid off ₹3,850 crore debts through funds received from IHC and internal dues.

Two other companies in the group Al-Adani Ports and the Special Economic Zone Adani Transmission has not announced its results yet but the operating performance of both companies has been good.