The Adani group has significant outstanding debt, according to the credit research firm, and taking advantage of its predicament could have a detrimental effect on the group.
CreditSights, a financial services company owned by Fitch Ratings, has expressed concern regarding Gautam Adani’s expansion of the debt owed by the Adani Group. The Adani Group is the subject of a report by Creditsites. The shares of businesses listed on the Adani Group’s stock exchange sharply declined on Tuesday after this report came to light. After falling by 5%, the shares of Adani Power and Adani Wilmar started to decline.
Adani Group deeply leveraged
According to a report by Creditsites on the operations of Gautam Adani’s Adani Group, this organisation is deeply leveraged. According to the report, the Adani Group is expanding rapidly, putting more strain on the business’s finances. The Adani Group is starting a venture that needs a lot of funding. According to the report, the promoters have contributed very little money to the group companies. The report added that as the Adani Group and Mukesh Ambani’s Reliance Industries battle it out to rule the market, the risk of making poor choices is also rising.
Adani group has significant outstanding debt
The Adani group has significant outstanding debt, according to the credit research firm, and taking advantage of its predicament could have a detrimental effect on the group. The report also warned that the business might fall victim to a debt trap. Investors have been forewarned in the report about the lack of oversight in the Adani group companies.
Due to this report, out of the seven companies listed in the Adani Group’s stock market, six companies have seen a big decline. Adani Green Energy fell by 3.62 percent, Adavi Power 5 percent, Adani Wilmar 3.87 percent, Adani Transmission 0.62 percent, Adani Ports 0.90 percent, Adani Enterprises 0.87 percent.