Adani Enterprises to raise Rs 1,000 cr via public issue of debentures

CareEdge has assigned 'A+' to the proposed issuance of debentures. It also reaffirmed ratings for long-term bank ratings 'A+' and short-term facilities 'A1+'

Adani Enterprises Ltd (AEL) plans to raise up to Rs 1,000 crore through public issue of non-convertible debentures to support business operations.

AEL is the flagship company of the Adani group with promoter group holding a 72.28 per cent stake in the company as on June 30, 2022.

CareEdge, a rating agency, has assigned 'A+' to the proposed issuance of debentures. It also reaffirmed ratings for long-term bank ratings 'A+' and short-term facilities 'A1+'.

The ratings continue to derive strength from AEL’s leading position in the coal trading business and ramp-up in the operations of the high-profit margin mining services segment during FY21 and FY22.

It has a healthy outstanding order book position in the road segment after securing large toll roads and hybrid annuity model (HAM) projects, CARE said.

The above rating strengths are tempered by the incubation risk associated with large-sized projects in diverse areas wherein AEL does not possess prior experience, and large capex envisaged in the airport segment.

Its liquidity position remains strong. On a consolidated basis, AEL reported cash accruals of Rs 2,121 crore as against the repayment of Rs 1,428 crore during FY23.

AEL, on a standalone basis, has mainly integrated resources management/coal trading, power trading and mining services businesses. AEL, on a consolidated basis, has diversified businesses, which include solar cell and module manufacturing, agro-processing (including the sale of branded edible oil), commodities trading, bunkering (fueling) of ships and shipping.