Reports Say Adani Group Is 'Deeply Overleveraged'

August 24, 2022 12:47
Reports Say Adani Group Is 'Deeply Overleveraged'

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Reports Say Adani Group Is 'Deeply Overleveraged':- Indian billionaire Gautam Adani emerged as the richest Asian businessman in no time and he has made wise investments in various fields which is minting him gold. His aggressive expansion has put a pressure on the credit metrics and cash flow of Adani Group. A report said that Adani Group is deeplyy overleveraged as most of his new businesses are funded with debts and in the worst scenario, Adani Group may spiral into a debt trap and turn a defaulter. It is required to reduce the leverage in the stretched balance sheets in every business told the agency. Adani Group did not respond to this immeidately. Five among the seven listed firms owned by Adani Group closed lower on Tuesday in the trading.

Adani Group has invested big on data centers, ports, cement, coal mining, airports and others. The company recently decided to plow 70 billion USD into the renewable projects and the fortunes of Gautam Adani surged past 135 billion USD this year. Gautam Adani also replaced Mukesh Ambani, the richest Indian. Adani Group is entering into unrelated businesses which are intensive and they are raising concerns over the execution. This can also lead to imprudent financial decisions. Gautam Adani also enjoys a strong relationship with the government of Narendra Modi and he was fairly benefited. The report also said that Adani Group is largely debt funded and it should be cautiously watchful.

(Video Source: ETV Telangana)

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Adani Group  Gautam Adani