From January 2023 till now, the Adani Group has invested approximately Rs. 80,000 crore (US$9.6 billion) acquired 33 companies in various businesses. Notably, the acquisition was made at a time when the group was facing serious fraud allegations. The group then tried to gain confidence among investors and also hinted that there was no crisis in the company. There is no dearth of money either.
The port sector contributed about Rs. 28,145 crore led the way with acquisitions, followed by the cement sector at Rs. 24,710 crore with acquisitions and the power sector at Rs. 12,251 crore with acquisitions leading the way. In new and growing business Rs. 3,927 crore worth of acquisitions, while the transmission and distribution sector accounted for Rs. 2,544 crore worth of deals were done. The debt-ridden Jaypee Group, which is undergoing bankruptcy proceedings, has a Rs. 13,500 crore proposed acquisition is not included in this list. The deal is yet to be completed. At the same time, some deals that are yet to take place are also not included.
The acquisition comes at a time when the Adani Group is trying to regain investor confidence. In early 2023, the now-defunct American short seller Hindenburg Research accused the group of accounting fraud and stock manipulation – allegations the group has consistently denied. The conglomerate, which spans from ports to the energy sector, has made a comeback, improved its balance sheet and sought to expand into other sectors. So that the confidence of the investors can be gained. The group prioritized debt reduction, equity investments and tightening capital allocation, while continuing to make acquisitions in key businesses such as ports, cement and power to maintain cash flow and scale profits.
Analysts say better transparency and constant interaction with lenders have helped stabilize funding, while steady implementation has contributed to timely completion of projects. An analyst tracking the group at a leading brokerage firm said lower leverage, resumption of deals and the end of regulator scrutiny have gradually eased investor concerns, confirming that the group has managed balance sheet risks and regained strategic momentum.
Adani’s flagship shopping destination
- According to market data, among the 33 deals completed in the last three years, the largest was the acquisition of Australia’s North Queensland Export Terminal (NQXT) by Adani Ports and Special Economic Zones Ltd for Rs 21,700 crore in April this year.
- However, the most active sector was the cement sector, where continuous acquisitions were made. In August 2023, group company Ambuja Cements acquired 56.74 percent controlling stake in Sanghi Industries from the Ravi Sanghi family for Rs. 5,000 crore was acquired.
- In January 2024, its subsidiary ACC bought Asian Concrete and Cements Pvt Ltd for Rs. 775 crore acquired.
- Following this, in April, My Home Group’s Tuticorin grinding unit in Tamil Nadu was acquired for Rs 413.75 crore.
- In June of the same year, Penna Cement Industries received Rs. 10,422 crore and in October 2024, Orient Cement Rs. 8,100 crore was acquired.
- In April this year, it acquired 46.64 per cent stake from the existing promoters to gain control of ITD Cementation for Rs. 3,204 crore and then bought 26 per cent stake from public shareholders, totaling Rs. 5,757 crores.
- In the port sector, Adani Group plans to develop Karaikal Port in April 2023 at Rs. 1,485 crore, Gopalpur Port in March 2024 at Rs. 3,080 crore and in August 2024 Astro Offshore Rs. 1,550 crore was acquired. It also made foreign acquisitions in May 2024 by buying Tanzania’s Dar es Salaam Port for Rs 330 crore.
- According to information, acquisitions made in the power sector by Lanco Amarkantak at Rs. 4,101 crore acquisition, Rs. 4,000 crore acquisition of Vidarbha Industries and Rs. 3,335 crore acquisition of Coastal Energy Pvt Ltd. Other deals have been done in the data center business, power transmission, road and real estate sectors.
10 lakh crore investment programme
Analysts say improved leverage metrics and consistent outperformance have helped restore confidence among lenders and investors, reinforcing the perception that the group’s balance sheet risks are under control. As part of the plan to go ahead, the Adani Group plans to invest approximately Rs. 10 lakh crore investment programme, which is expected to be raised through greenfield and brownfield projects as well as selective acquisitions in infrastructure, energy and logistics portfolios.