© Reuters. FILE PHOTO: The Adani Group logo is seen on the facade of one of its buildings on the outskirts of Ahmedabad, India, April 13, 2021. REUTERS/Amit Dave
By Sriram Mani
MUMBAI (Reuters) – India’s Adani Group, controlled by billionaire Gautam Adani, plans to spin off more businesses by 2028 and dismisses any debt concerns, the group’s chief financial officer told Reuters.
The corporate house plans to spin off or spin off its metals, mining, data center, airport, road and logistics businesses, Jugeshinder Singh said.
“The criteria is that these businesses achieve a basic investment profile and experienced management by 2025-28, which is when we plan to separate them,” he said.
The company is betting big on its airport business and aims to make it the country’s largest service base outside of government services in the coming years, Singh said.
The Adani group has spun off its power, coal, transmission and green energy businesses in the last five to seven years.
Adani, the world’s third-richest man according to Forbes, has been diversifying his empire from ports to energy and now owns a media company.
His flagship firm, Adani Enterprises, is set to raise up to $2.5 billion in a follow-up share sale, Reuters previously reported.
“We don’t go to market if we’re not sure we’ll raise the full amount ($2.5bn),” Singh said, adding that the company wants to increase participation from retail investors and is therefore seeking a primary rather than a primary issue. rights problem.
The company plans to use the money to finance green hydrogen projects, airport facilities and Greenfield highways, as well as reduce its debt, it previously said.
The group has typically incubated businesses within its flagship company, to separate and list later. Its listed arms today operate in sectors including ports, power transmission, green energy, and food production.
NO WORRIES OF DEBTS
Analysts have raised concerns about the debt buildup that Singh dismissed.
Adani Group’s total gross debt in the financial year ending 31 March 2022 increased by 40% to Rs 2.2 trillion. CreditSights, part of the Fitch Group, described the Adani Group in September 2022 as “overleveraged” and said it had “concerns” about its debt.
While the report later corrected some miscalculations, CreditSights said it remained concerned about leverage.
“No one has raised debt concerns with us. No investor has. I am in contact with thousands of high net worth individuals and 160 institutions and no one has said this,” Singh said.
($1 = 80.9790 Indian rupees)
