CreditSights says Adani Group continues to seek strategic partners

Richest Indian Gautam Adani’s conglomerate continues to seek strategic equity partners aligned with its long-term investment strategy as it expands across the energy to transport to mining sectors, debt research firm CreditSights said.

In a report, CreditSights said Adani Group is venturing into new or unrelated businesses, which are highly capital intensive.

“We still hold our view that several of the Group companies maintain elevated leverage, owing to aggressive expansion plans that are largely debt-funded and that have pressurised their credit metrics and cash flows,” it said.

CreditSights said it expects Adani Group expansion and acquisition appetite to remain robust ahead, and incremental debt on account of expansion to outpace additional EBITDA generation, which could result in further credit profile deterioration.