Adani News: Plan to raise Rs 40,000 crore from small investors, FDs to yield higher returns

New Delhi. Adani Group will raise Rs 30,000 to 40,000 crore from retail investors in the next 3-4 years. Its objective is to diversify sources of funds and reduce risk. Sources familiar with the matter reported this. Adani Enterprises, the flagship company of the Adani Group, has launched its first non-convertible debenture (NCD) of Rs 400 crore. NCDs have a tenure of 2 to 5 years and have an effective annual yield of 9.25% to 9.90%. This return is higher than the return given by banks on FD. This NCD was fully subscribed on the first day. This issue will close on September 17.

“The group plans to launch similar public issues (NCDs) for other entities as well,” said a source on condition of anonymity. This will help the group to diversify its credit from a bank-only basis. At present, most of the group’s loans are with public and private banks.

A total of Rs 88,100 crore debt from financial institutions
According to Adani Group’s recent corporate filings, various entities of the group have borrowed a total of Rs 88,100 crore from banks and financial institutions. This loan is in long term and working capital category. The group’s debt figure is as at 31 March 2024. Adani Enterprises also acts as an incubator for the group’s new businesses.

Short-term loans rose to Rs 4,897 crore.
The company’s long-term debt rose to Rs 43,718 crore from Rs 32,590 crore in FY 2022-23, according to a recent investor presentation. Similarly, short-term loans rose to Rs 4,897 crore from Rs 4,244 crore. The company’s total debt increased from Rs 38,320 crore in FY 2022-23 to Rs 50,124 crore in FY 2023-24. However, the company’s cash, bank balance and current investments rose to Rs 8,523 crore from Rs 5,539 crore.

(Disclaimer: Before investing, please consult a certified investment advisor.)

Tags: Adani Group, Bank FD, FD Rates, Fixed Deposits, Gautam Adani