Adani completes 33 acquisitions worth ₹80,000cr post-Hindenburg turmoil
What's the story
Adani Group has made 33 acquisitions worth around ₹80,000 crore ($9.6 billion) across its businesses since January 2023. The buying spree comes after the short-seller allegations that rattled markets nearly three years ago. The acquisitions have mainly been in the conglomerate's core sectors such as ports, cement, and power.
Sectoral distribution
Breakdown of Adani's acquisitions across sectors
The largest chunk of Adani's acquisitions has been in the ports sector, with deals worth around ₹28,145 crore. This was followed by cement at ₹24,710 crore and power at ₹12,251 crore. Newer businesses accounted for ₹3,927 crore while transmission and distribution added another ₹2,544 crore to the total. The list doesn't include a planned acquisition of debt-laden Jaypee Group in bankruptcy proceedings worth ₹13,500 crore which is yet to be concluded.
Recovery plan
Adani's strategy to regain investor confidence
The acquisitions come as Adani works to rebuild investor confidence after Hindenburg Research accused the group of accounting irregularities and stock manipulation in early 2023. The ports-to-energy conglomerate's comeback strategy has been a mix of balance-sheet repair and selective expansion aimed at restoring credibility. The group prioritized deleveraging, equity infusions, and tighter capital allocation while continuing acquisitions in core businesses such as ports, cement, and power.
Financial stability
Adani's net debt-to-Ebitda ratio below guidance range
In recent quarters, Adani has stressed its resilient balance sheet with a net debt-to-EBITDA ratio of about 3x, which is lower than its stated guidance range of 3.5x to 4.5x. This comes even as the group continued to invest and expand across sectors. The biggest deal among the 33 closed in the last three years was Adani Ports and Special Economic Zones Ltd's ₹21,700 crore buyout of Australia's North Queensland Export Terminal (NQXT) in April this year.