Adani

The aggressive expansion pursued by the Adani Group, led by Asia's richest person, has put pressure on its credit metrics and cash flow, CreditSights said.

The family’s “entire fortune and reputation is tied to the Adani Group companies,” it said. Adani Group acquired the Haifa port in Israel in July for $1.2 billion and Swiss firm Holcim’s Indian cement units for $10.5 billion in May, besides almost three dozen big and small acquisitions. Adani Enterprises and Adani Green Energy Ltd. CreditSights’ analysts, however, said they draw “comfort” from the group’s strong relationships with banks as well as the administration of Indian Prime Minister Narendra Modi. He’s also increasingly moving into spheres dominated by the man he replaced as Asia’s richest man, compatriot Mukesh Ambani of Reliance Industries Ltd. All seven listed Adani firms declined by 2% to 7% in trading Tuesday.

The report draws up a number of credit concerns posed by the Adani Group, ranging from its overly-leveraged aggressive expansion to forays into ...

On the other hand, as highlighted above, Adani has elevated leverage and poor interest cover and cash outflows across virtually all its entities, and is at greater financial risk.” It is difficult to gauge the family’s ability to inject their own funds in a scenario where any of the Group companies require equity injections by the promoter.” Though there was news last year regarding the stock regulator, the Securities and Exchange Board of India (SEBI) Conversely, Reliance was a new entrant in the telecom market in 2015 whereas Adani followed into the telecom business by successfully bidding for spectrum in India’s recently-held 5G auctions. Looking ahead, it plans to foray into the enterprise data in telecom and has massive plans to grow its green hydrogen and airport businesses. While Adani Green Energy Limited entered the renewable energy business in 2015, RIL also announced its foray into the sector in 2021. In the worst-case scenario, overly ambitious debt-funded growth plans could eventually spiral into a massive debt trap, and possibly culminate into a distressed situation or default of one or more group companies.” In India, typical borrowing costs for infrastructure projects are as high as 9-11% per annum (depending on domestic benchmark rates), which adds a large interest burden on the entities. The report mentions the astronomical rise of Gautam Adani’s wealth and his recent feat of displacing Bill Gates to occupy the position of the fourth-richest man in the world. The group is also planning on venturing into sectors where it has no prior experience or expertise, which includes domains like copper refining, petrochemicals, data centres and most recently, telecom and aluminium production. Founded in 1988 as a commodity trading business by businessman Gautam Adani, the Group has expanded rapidly across key industry verticals such as energy, utilities and transportation. After the Reliance and Tata groups, the Adani Group is the third largest conglomerate in India based on a total market capitalisation of over $200 billion, as of August, 2022.

The move follows indirect acquisition of 29.18% shareholding in the media and news broadcaster.

We look forward to strengthening NDTV’s leadership in news delivery,” he said. In September last year, it hired veteran journalist Sanjay Pugalia to lead its media company, Adani Media Ventures. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. An Adani Group firm first acquired a company that in the past was linked to rival billionaire Mukesh Ambani. VCPL has exercised warrants to acquire 99.5 per cent in RRPR,” it said. Ambani’s Jio had bought Nahata group’s Infotel Broadband in 2010 to re-enter the telecom business. Ambani’s group but its ownership was transferred to a firm run by an associate with links to Delhi-based Nahata Group. (example: u cannot substitute for you, d is not 'the', n is not 'and'). NDTV’s share price, which has risen more than 300% so far this year, closed at ₹366.20 apiece on BSE on Tuesday. “This (NDTV) acquisition is a significant milestone in the journey of AMNL’s goal to pave the path of new age media across platforms,” Sanjay Pugalia, CEO of AMG Media Networks Ltd (AMNL), said. VCPL along with Adani Media Networks Ltd and Adani Enterprises Ltd has made the open offer at a price of ₹294 each for the acquisition of up to 1,67,62,530 fully paid-up equity shares of NDTV. The particular company had loaned money to NDTV and the Adani group firm exercised the option to convert that debt into a 29.18% stake in the news channel company.

Adani Group's media arm will buy a 29.18% stake in New Delhi Television Ltd (NDTV), and make an open offer to acquire another 26% of the shares in the media ...

"Vishvapradhan Commercial Private Limited (VCPL), a wholly owned subsidiary of AMG Media Networks Limited (AMNL), exercised the rights to acquire 99.5% of ...

They individually and through their company, RRPR Holding Private Limited, continue to hold 61.45% of the total paid-up share capital of NDTV," NDTV said in a BSE filing. [Sensex](https://economictimes.indiatimes.com/indices/sensex_30_companies)and [Nifty](https://economictimes.indiatimes.com/indices/nifty_50_companies)Track [latest market news](https://economictimes.indiatimes.com/markets/stocks), [stock tips](https://economictimes.indiatimes.com/markets/stocks/recos)and [expert advice](https://economictimes.indiatimes.com/markets/expert-view)on [ETMarkets](https://economictimes.indiatimes.com/markets). "The notice from VCPL is based on a loan agreement it entered with NDTV founders Radhika and Prannoy Roy in 2009-10. "The acquisition is in line with AMNL’s objective of setting up a credible next-generation media platform with an emphasis on digital and broadcast segments, amongst others," AMNL said. RRPR is a promoter group company of NDTV and holds a 29.18% stake in NDTV. [NDTV](/topic/ndtv)after Adani Group firms today launched an open offer to acquire 26 per cent stake in the media company for Rs 294 per share. For fastest news alerts on financial markets, investment strategies and stocks alerts, [subscribe to our Telegram feeds](https://t.me/joinchat/J60pKE7SOStsj5sI8nDmHQ).) Adani firm VCPL said it has the right to buy all of the existing equity shares of RRPR held by Prannoy Roy and Radhika Roy and acquire 100% of the equity share capital of RRPR. "Thus, the said transaction will result in an indirect acquisition of voting rights in excess of 25% of NDTV, triggering an open offer by VCPL under the provisions of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (“SAST Regulations”) for up to 16,762,530 fully paid-up equity shares, "Vishvapradhan Commercial Private Limited (VCPL), a wholly owned subsidiary of AMG Media Networks Limited (AMNL), exercised the rights to acquire 99.5% of the equity shares of RRPR Holding Private Limited, a promoter group company of NDTV," AMG Media Networks said in a release. VCPL, along with AMNL & AEL (persons acting in concert), launched an open offer to acquire up to 26% stake in NDTV in compliance with the requirements of the SEBI’s (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. It said the move would trigger an open offer to acquire up to 26% stake in NDTV in terms of SEBI’s Takeover Regulations.

Adani Group shares price today: While Adani Enterprises shares fell up to 4.03 per cent to Rs 2929.05, Adani Ports and Special Economic Zone stock was ...

RECOMMENDED "Overall, we remain cautiously watchful of the Group's growing expansion appetite, which is largely debt-funded. CreditSights further pointed out that Adani Group is exposed to moderate levels of governance and ESH risks. The rating agency stated, "As the two mega conglomerates in the Indian corporate sector compete for market share in a few new economy businesses (e.g., renewable power, telecom), it could lead to some imprudent financial decisions from both sides, such as higher capex spends, aggressive bidding, and overleveraging. The credit note said that the Adani Group was venturing into new and/or unrelated businesses, raising concerns regarding spreading execution oversight too thin. Shares of another Adani Group firm Adani Wilmar fell up to 4.99 per cent to Rs 687.7 on BSE. Its strong competition with Mukesh Ambani-helmed Reliance Industries could push Adani Group to make some imprudent financial decisions, said CreditSights.

Shares of NDTV settled at Rs 366.20 on BSE, up 2.61 percent from the previous close. Its revenue for the financial year ended March 31, 2022 was Rs 230.91 ...

NDTV was founded by one of India’s most famous TV news personalities, Prannoy Roy, and his wife in 1988. It operates three national channels – NDTV 24×7 in English, NDTV India in Hindi and a business news channel. On Monday, NDTV said in a stock exchange disclosure that Radhika and Prannoy Roy were not in discussions with any entity for a change in ownership or a divestment of their stake in NDTV. A unit of the Adani Group said it had used financial rights in a bid to purchase a 29.18% stake in NDTV, laying out plans for a subsequent open offer for another 26% stake in line with Indian regulations. Hours after the announcement, NDTV issued a statement saying the move by the Adani group “was executed without any input from, conversation with, or consent of the NDTV founders.” [Delhi](https://indianexpress.com/section/cities/delhi/) Television (NDTV), a move the TV news group said was executed without its consent.

The Fitch Group research unit 's report warned of the worst-case scenario of a potential default. Billionaire Gautam S. Adani, chairman of Adani Group, center, ...

But in its report the agency said that the family’s wealth is largely “paper wealth” tied to the shares held in the business. And despite thatlarge net worth, “it is difficult to predict the extent of the promoter’s capacity to continually provide liquidity support due to potential contagion risk to the whole Group in the event of one or more group companies falling into distress,” the report said. The investments are predominantly funded with debt, resulting in elevated leverage which has “understandably caused concerns about the Group as a whole,” said the report which was released on Tuesday. He founded the group as a commodity trading business in 1988 and expanded rapidly across key industries such as energy, utilities and transportation. Adani Total Gas Ltd has rallied about 1,900 percent and Adani Transmission Ltd more than 900 percent, while the benchmark S&P BSE Sensex surged almost 42 percent over this period. All seven listed Adani firms declined by 2 percent to 7 percent in trading on Tuesday.

NDTV or its founders were not aware of any transaction and were not part of any discussion regarding the stake sale, the company said in a statement.