Business & Investment

Adani Group Equity: Gotam Adani needs at least an investor who has a website

Gautam Adani’s debt-fueled empire this week
Economic Times has three of the six Mauritius-based funds Having invested most of their money in Indian billionaire stocks, they saw their accounts frozen by national stock depositors.

The· Adani Group The report argued that it was “apparently wrong” and fell below the plunge in stock prices. But it wasn’t before the loss of $ 6 billion in wealth on Monday. The next day, the accounts of Cresta Fund Limited, Albrin Bestment Fund Limited and APMS Investment Fund Limited were announced to be in “debit suspension” status under the regulations of the Securities and Exchange Commission of India, and Jitter returned. Adani Total Gas Ltd., Adani Power Ltd., and Adani Transmission Ltd. all fell below the 5% daily limit in Mumbai on Tuesday.

Sales continued on Wednesday.

Temporary stock market tensions do not shake the second wealthiest man in Asia. He was able to maintain a decade-long entanglement in Australia’s controversial and costly coal mine investment without knowing future profits. Behind that confidence lies the core of the group. Adani Ports & Special Economic Zone Ltd. is spitting out $ 1 billion in cash annually, up nine-fold since 2014.

The gathering of different parts of Adani’s vast infrastructure jigsaw reflects the rise of Narendra Modi, the longtime Prime Minister of Gujarat, the hometown of Adani, who has been Prime Minister of India for the past seven years. All a businessman needs to pay off his bet is to fulfill his decade-long dream of moving India from a low-middle-income country to a high-middle-income country.

That surge in per capita income may have been delayed even before Covid-19. Still, the upcoming growth surge should create a thirst for products similar to those witnessed by China between 2006 and 2016. For breakfast by supplying electricity when 1.4 billion Indians are sleeping and pipe gas when sitting, and from one of his airports they are browsing the internet To host their data while waiting for the plane to take off, Adani collects cash justifying the group’s listed companies’ estimated $ 20 billion in debt.


That’s why this week’s turmoil isn’t completely unimportant. In the event of prolonged damage to investor confidence, conglomerates may need to taper their breathtaking expansion. And that doesn’t apply to Adani.

In less than 30 years, his modest trading company has transformed into a large owner of energy and transportation assets in a country that does not have enough energy and transportation assets. Now, the businessman wants to expand into cement production, perhaps taking advantage of the fly ash produced at his power plant. Initial public offerings of the airport business may also be listed on the card.

That would be a typical move. To seize the opportunity to seize capital, the original company, Adani Enterprises Ltd., has spun off several units to the open market. However, the list of shareholders of these stocks, which have increased in value by 200% to 900% over the past year, needs explanation. Take Adani Green Energy Ltd., which wants to be the world’s largest producer of renewable energy by 2030. Earlier this year, the company sold a 20% stake in Total SE. That’s a definite name. Vanguard Group Inc, which has few shares. And Blackrock Inc. Is the same.

But between them is something like the Elara India Opportunities Fund. $ 4 Billion Investment Vehicle Takes Most Of That Opportunity Adani Group Share.. Look at over 97% of the fund’s assets parked in five of them. It doesn’t even hold a million dollar stake in what other fund managers usually buy in India (eg, big banks, top-notch). Reliance Industries Limited, a software exporter or the largest company in the country in terms of market value.

Adani strainBloomberg

It’s not just Elara. Bloomberg Intelligence strategists Gortam Patanker and Nitin Chanduka said last week that six Mauritius-based offshore funds (the largest holders of foreign investor pools) accounted for more than 95% of their assets ($ 2 billion to $ 40). He said he had invested $ 100 million in Adan’s company.

In an interview with CNBC yesterday, Adani Group Chief Financial Officer Jugeshinder Singh said that as companies establish a longer track record in the public market, higher quality institutions will come. He also argued that the questions asked to him about ambiguous fund managers should ideally be answered by the investors themselves. The question is where to find them. I could have asked an analyst, but I couldn’t find anyone with a market capitalization of $ 25 billion in AdaniGreen stock.

Adani’s Jaguar Note rolls. But as the group grows and wants more cash-generating assets, it will need larger dollar external equity. It helps, at least if it comes from an investor who has a website.

Adani Group Equity: Gotam Adani needs at least an investor who has a website Adani Group Equity: Gotam Adani needs at least an investor who has a website

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