Adani Group’s Total Debt Surpasses 1% of Indian Economy

Gautam Adani’s troubles continue as the total debt of his companies surpasses 1% of the Indian Economy. After Hindenburg Research issued a staggering report that alleged Adani group in accounting fraud and stock manipulation, the stock price of Adani’s various companies kept stumbling. In between this, various economic forums find out the amount of debt Adani group has right now.

The recent analysis of Nikkie Asia stated that- Total debt owed by the Adani Group is 1% of the Indian Economy. The analysis shows that the Adani Group has a total attribute of Rs 3.39 trillion, which is equals to $41.1 billion.

According to the Indian Monetary Fund (IMF) report, the gross domestic product of India back in October 2022 was Rs 273 trillion. With this, Adani’s total debt surpassed 1% of the Indian Economy. Adani Group has a total 10 listed companies whose equity ratio is 25%. All these companies hold total assets of more than 4.8 trillion Rupees. The growing concern of its investors is due to outsized debt. Some Adani group’s companies are privately-held, that means the debt is expected to be higher in the future.

On 1 Feb 2023, Gautam Adani brought back its IPO, which consists of 200 billion new shares. The decision was taken due to the allegations of the Hindenburg Research. 

Gautam Adani, Chairperson of Adani Group, said– “Our balance sheet is healthy and assets robust.” He also stated that “Adani Group’s debt-to-EBITDA ratio has fallen from 7.6 to 3.2, which is very healthy.”

Also Read: Adani Group Plans To Trim Its Capital Spending Plan

On Monday, the group announced that Gautam Adani is paying off $1.1 billion in loans backed by the shares to bring back the confidence of its investors. There is no doubt that Adani Group is going through a critical time, and some specific figures can’t justify the estimated total debt incurred. The future growth of Indian Economy largely depends on the extent of debt repayment.

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