Gautam Adani's Little-Known Unlisted Company Is a Hidden Gem with 351 Subsidiaries: Report
Moneylife Digital Team 14 February 2023
Gautam Adani's promoter company Adani Properties Pvt Ltd has a sizeable portfolio of assets and investments for paying a part of any short-term loan obligations. Ahmedabad-based Adani Properties is a little-known unlisted company and has a record 351 subsidiaries, associate companies, and joint ventures (JVs) says a report from Business Today. Adani Properties was in the news for winning the bid to renovate Dharavi, one of the largest slum colonies in Asia.
 
According to the report, this three-decade-old company is one of the promoter group companies that hold investments on behalf of Gautam Adani family in flagship Adani Enterprises Ltd, Adani Ports and SEZ Ltd, Adani Power Ltd, Adani Green Energy Ltd, and Adani Transmission Ltd.
 
"The size and scale of this unlisted company would dwarf many listed companies in the market. It boasts of operating revenues of Rs11,144 crore and profits after tax of Rs4,763 crore for FY20-21. It has a debt of Rs28,618 crore and a net worth of Rs41,293 crore. What is interesting is the growth in the balance sheet, which has jumped from Rs37,446 crore in FY19-20 to a staggering Rs74,499 crore in FY20-21," the report says.
 
Many in the market speculate that Adani Properties will be a vehicle for meeting any short-term funding needs of the group companies, the report says, adding, "In fact, the group recently repaid loans totalling US$1.11bn (billion) to release pledged shares in three companies, Adani Green Energy, Adani Ports, and Adani Transmission. It is not known how the promoters raised the resources."
 
"Adani Properties' strong financials enable the company to raise additional debt resources or monetise part of the assets in the book," the report says, quoting a banker. 
 
The company's primary business is the wholesale trading of goods, and it also has investments in real estate and financial services via multiple subsidiaries, the report says, adding, "The list of properties also includes 8.21 lakh square feet of land in Mumbai's Bandra Kurla Complex. However, this property is pledged against the loan availed by the company. There are many other properties spread across Gujarat and other states."
 
According to the report, Credit Suisse, Barclays Merchant Bank, Copthall Mauritius, DB International, among others, recently subscribed to the company's non-convertible debenture (NCD) issue.
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