Adani needs to pay $2 bn loans by Mar `24

The group, which comprises eight main companies, had a net debt of $24.1 billion as of 30 September, according to a note released by the group on Tuesday. Total cash and cash equivalents increased to ₹31,646 crore at the end of 31 December from ₹29,754 crore at the end of the preceding quarter.

The eight companies are Adani Ports and Special Economic Zone Ltd, Adani Green Energy Ltd, Adani Transmission Ltd, Adani Total Gas Ltd (ATGL), Adani Power Ltd, Adani Enterprises Ltd, Ambuja Cements Ltd and ACC Ltd.

According to the note, Adani Ports has the largest upcoming repayment obligation of ₹6,631 crore, while Adani Total Gas has the lowest obligation at ₹513 crore. Adani Green has a repayment obligation of ₹1,529 crore, Adani Transmission’s obligation is ₹836 crore, Adani Power’s repayment need is ₹3,349 crore, and Adani Enterprises’ repayment obligation is ₹4,308 crore.

The group’s total assets across eight companies stands at around ₹4 trillion, the company claimed.

However, with most of the assets built using debt availed through collateralization of assets and charges on cash flows, the group may face difficulties refinancing debt. Lenders in India may demand additional assets as collateral, while shares may be difficult to use as collateral due to the sharp decline in Adani Group stock prices following a report of “fraud and stock manipulation” by US short-seller Hindenburg Research on 24 January.

A person close to the Adani Group said the group would mostly use internal accruals to repay debt obligations in the coming year.

The group, through the expected proceeds of ₹20,000 crore from the recently cancelled follow-on public offering of Adani Enterprises, was originally planning to repay some of its debts and finance some of its new projects, such as the green hydrogen business and the solar module manufacturing business. Of the ₹20,000 crore, at least ₹5,000 crore was planned to be used for general corporate purposes, including repayment of debts.

The FPO has, however, been withdrawn and the share prices of group firms, too, have plummeted.