Adani Group touts cash pile to ease Hindenburg-fueled concerns

Adani Group said it has enough cash to cover more than 30 months of debt payments, in a move aimed at alleviating concerns about its liquidity risk as the Indian conglomerate contemplates fresh fundraising for its flagship unit.

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Billionaire Gautam Adani’s group said its cash balance accounted for 24.8% of gross debt as of the end of the first quarter of the fiscal year that began in April, up from 17.7% a year earlier, according to its earnings release Monday.

The port-to-power conglomerate’s Ebitda, or earnings before interest, tax, depreciation and amortization, rose 33% to about 225.70 billion rupees ($2.7 billion) in the quarter ended June 30.

The stronger financial performance comes at a time when the conglomerate’s flagship firm Adani Enterprises Ltd. is considering raising around 100 billion rupees to 120 billion rupees through a share sale, following the recent success by its energy transmission unit in raising $1 billion.