Indian promoters who are short on funds frequently give up their shares to lay the groundwork for new firms or inject stock to grow current ones. Billionaire Gautam Adani accomplished that with the meager shares he promised in his publicly traded firms. Due to a sharp decline in the price of their shares, he also experienced considerable margin pressure.
One such little-known unlisted company that has invested in Group companies is Adani Properties, situated in Ahmedabad.
One of the promoter group companies, this three-decade-old business has investments for the Gautam Adani family in the Adani Enterprise flagship company, Adani Ports and SEZ, Adani Power, Adani Green Energy, and Adani Transmission.
Many listed corporations on the market are dwarfed by the size and scope of this unlisted company. For the 2020–21 fiscal year, it claims operating sales of Rs 11,144 crore and earnings after tax of Rs 4,763 crore. It has a net worth of Rs 41,293 crore and debt of Rs 28,618 crore. It’s remarkable to note how the balance sheet has grown, going from a startling Rs 37,446 crore in 2019–20 to a whopping Rs 74,499 crore in 2020–21.
The main line of business for the company is wholesale trading. Through a number of subsidiaries, it also has financial services and real estate investments. In actuality, it currently has 351 subsidiaries, associate firms, and joint ventures, which is a record.
8.21 lakh square feet of land in Mumbai’s Bandra Kurla Complex is also listed among the properties. However, the corporation has committed this property as security for the debt it has obtained. Other properties can be found all throughout Gujarat and other states.
Adani Properties has lately made headlines after gaining the contract to rebuild Dharavi, one of the largest Asian slum colonies.
Many in the market believe that Adani Properties would serve as a means of satisfying any immediate financial requirements of the group firms. In order to release pledged shares in three companies—Adani Green Energy, Adani Ports, and Adani Transmission—the group recently repaid loans totaling $1.1 billion. How the promoters raised the funds is unknown. According to a banker, “Adani Properties’ solid financial position allows the company to raise more debt funds or monetize any of the assets in the book.”
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