and over 600 billion rupees in foreign-currency denominated bonds, which have seen a sharp selloff.
Data from CLSA Figures in
billion rupees
Company name Borrowing via Borrowing from banks,
corporate debt financial institutions
Adani Ports & SEZ 93.73 51.83
Adani Enterprises 68.41 208.27
Adani Green 6 314.26
Energy
Adani 1.11 75.52
Transmission
Adani Power 0 405.93
But, domestic banks holding this debt are not panicking as
the Adani companies have enough cash flow to service the bonds,
officials at these lenders said.
"We have a small exposure to Adani's bonds but there is no
concern regarding this exposure as most of it is secured," said
an official at a large state-run lender.
Bankers are not seeing an immediate risk of default, an
official at a private lender said, while another state-run
bank's official said lenders would wait to see whether the
markets regulator steps in.
The officials did not want to be named as they are not
authorised to speak to the media.
However, Srinivasan said the Adani Group firms could find it
difficult to raise fresh funds from the local bond markets until
the concerns raised by Hindenburg were addressed.
Yogesh Kalinge, vice president at AK Capital Services
concurred with the view.
"Going forward, investors are likely to demand higher yields
for the group's debt issuances considering the impact on
investor sentiment and credit concerns arising from the report,"
he said.
Moreover, Adani Group companies have not been rolling over
many of their short-term commercial papers and instead allowed
them to mature.
That, Kalinge said, might deter banks and mutual funds,
which are not very keen to have a large exposure to short-term
papers.
"While mutual funds were more comfortable prior to this
event, they will likely have apprehensions in investing bulk of
their holdings in short-term papers issued by the group."
($1 = 81.9730 Indian rupees) (Reporting by Siddhi Nayak and Dharamraj Dhutia; Editing by Savio D'Souza)
