The shares of Adani Enterprises Limited, tumbled by more than 2 percent in the early hours of Monday. This came after several media reports surfaced that said the company has added more debt to its balance sheet.
As per the reports, Adani Airport Holdings, part of Adani Enterprises has increased its borrowing limit by Rs 2,500 crore. The company now has a borrowing limit of Rs 16,500 crore up from Rs 14,000 crore. This is to fund the expansion of its eight airports across the country.
Adani Airport Holdings currently manages seven functional airports in Mumbai, Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati, and Thiruvananthapuram. It is also building Navi Mumbai airport, which is expected to start operations by the end of the year 2024.
As per the financial statements of the company at the end of FY22, Adani Airport Holdings has a total debt of Rs 8,319.89 crore. Out of the total, at least 90 percent of these borrowings have been taken from other Adani Group companies such as Adani Enterprises, Adani Properties, and Adani Rail Infra as inter-corporate deposits at anywhere between 8 percent and 13.5 percent annual interest rate, according to the statement.
The shares of Adani Enterprises Limited have been declining and have shed more than 3 percent in a month. However, in the past six months, it has zoomed by more than 72 percent and has delivered multibagger returns of 124 percent on a Year to Date (YTD) basis.
In Q2FY23, their revenue jumped by 189 percent to Rs 38,175.23 crore up from Rs 13,218.02 crore in the same period last year. The net profit of the company stood at Rs 438.9 crore, an increase of 261 percent from Rs 121.74 crore in Q2FY22.
The promoters of the company hold a 72.63 percent stake and have pledged 2.66 percent. In addition to that, Foreign Institutional Investors (FIIs) hold a 15.59 stake in Adani Enterprises.
Written by Anoushka Roy
