Adani Capital to raise Rs 10 billion in FY19, mostly through bank loans

Adani Capital, the financial services arm of diversified Adani group, is planning to raise around Rs 10 billion in debt, mostly in bank loans, this financial year to fund growth.
 

The company began operations as an NBFC in April 2017 with a focus on MSME and corporate finance. The MSME finance mainly includes business loans, farm sector finance, commercial vehicle loans and supply chain finance, while in corporate finance, it mainly operates in infrastructure real estate and corporate loans.
 

"We will be borrowing Rs 600 crore in term loans from the banks over the course of the year. Another Rs 200 crore is planned in short-term working capital and Rs 150 crore will be raised through commercial papers, taking the overall fund raising to around Rs 1,000 crore this fiscal year," Gaurav Gupta, chief executive, Adani Capital, told PTI Monday.
 

The proposed long-term bank facilities have been assigned AA- rating from Crisil, he said, adding the latest Crisil rating adds to the existing A1+ rating for Adani Capital's short-term bank facilities and debt instruments worth Rs 2 billion.
 

Of this, the company has so far raised Rs 350 million through its maiden commercial paper issuance last month.
 

The strong rating will help the company price the loans competitively, which in turn will help it provide cost-effective finance to entrepreneurs.
 

The company has 22 branches across small towns in Gujarat and Maharashtra, and will be adding an additional 25- 30 branches by expanding to the neighbouring Rajasthan and Karnataka over the course of this fiscal year, he said.
 

As of August, Adani Capital had a loan book of Rs 334 crore, with its MSME and corporate finance portfolios contributing Rs 112 crore and Rs 222 crore, respectively.
 

The company extends growth capital to entrepreneurs in the micro and small entrepreneurs segment, with ticket size ranging from Rs 1-25 lakh, apart from offering affordable housing loans.