Adani Group plans to invest Rs 1.3 lakh crore across its portfolio companies this fiscal

Billionaire Gautam Adani-led Adani Group plans to invest Rs 1.3 lakh crore across its portfolio companies this fiscal, Group CFO Jugeshinder 'Robbie' Singh said. He said that 70 per cent of the investment in its portfolio companies including ports, energy, airports, commodities, cement and media, will be met through internal cash generation and the remaining through debt. 

Singh said that the group will look to refinance $3-4 billion of debt maturing in the year and raise an additional $1 billion in project financing. The annual $2-2.5 billion of equity infusion by bringing in new investors is also likely to continue. 

Asserting that this year will be about project completion, Singh said that the renewable energy firm Adani Green will complete 6-7 GW project, while the solar wafer manufacturing will also be scaled up. The new airport in Mumbai will be completed too, he said. 

The projected capital expenditure or capex for April 2024 to March 2025 fiscal is 40 per cent higher than what the portfolio is estimated to have incurred in FY24. 

This comes after the group had guided a $100 billion capex over the next 7-10 years, most of which is expected to go into the group’s fast growing businesses, including renewable, green hydrogen, airports and infrastructure. 

Around 70 per cent of the planned capex will go into its green portfolio of renewable power, green hydrogen, green evacuation, and the remaining 30 per cent will be spent on the airports and ports businesses. 

Adani’s empire that took a hit after US short seller Hindenburg Research’s damning report, spans across ports, power generation, airports, mining, renewables, gas, data centres, media and cement. Currently the Adani Group is the world's second largest solar power company, it is the largest airport operator with 25 per cent of passenger traffic and 40 per cent of air cargo, the largest ports and logistics company with 30 per cent of national market share, largest integrated energy player, and the country's second largest cement manufacturer.

Speaking about the Hindenburg report in the company’s Annual General Meeting on Monday, Adani said, “Typical short sellers target gains from financial markets. This was different. It was a two-sided attack – a vague criticism of our financial standing and, at the same time, an information distortion campaign, dragging us into a political battlefield. The attack was a calculated strike two days before the closing of our Follow-on Public Offer. Amplified by a segment of vested media, it was designed to defame us, do maximum damage and erode our hard-earned market value.”