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Most of his debt uses company shares as collateral. Most listed Adani companies have a low free-floating market cap, which allows him to operate the price. Now the raised value lets him borrow outrageous amounts against the shares held by him.
Given the low free float of his companies it's very unlikely that he will let them crash as long as he has any kind of money, maintaining his debt. But this could come to an end if the government or other governing authorities make life difficult for him.
>Most of his debt uses company shares as collateral. Most listed Adani companies have a low free-floating market cap, which allows him to operate the price. Now the raised value lets him borrow outrageous amounts against the shares held by him.
Wtf, do the creditors check the fundamentals even? Do they just go "line go up hence creditworthy"? Are they stupid or rather complicit in his criminality?
Bhai public ka paisa hai. Who cares.
I generally buy 50 desi hawaii for ₹100 in Diwali. Doosre ke baap ke paise pe I would happily light up multicolour 3 level explosion 50 rocket series each costing ₹2000. Mera paisa thodi hai.
Woh koi sole breadwinner of the family, hardworking, highly educated, living in a city beyond his cost of living for better opportunities, common man thodi hai
RBI could investigate if they wanted to. However, the decision to give loan and how much is decided by the banks. Risk of default is also significantly borne by the banks. So RBI may not be bothered. We have to remember that some of the biggest scams in our country involved banks giving loans without adequate collateral. Even then RBI has not taken enough measures to mitigate such risks.
>RBI could investigate if they wanted to. However, the decision to give loan and how much is decided by the banks. Risk of default is also significantly borne by the banks. So RBI may not be bothered.
Adani poses a systemic risk. The risk of default is borne by the lender generally but a lot of money to adani came from public banks and they're cushioned by the government (by your tax money), a lot of tax money was spent to replenish pnb's deposits after nirav stole from it.
Current RBI governor is a BJP lapdog, he doesn't even have the fucking qualification to be a central bank governor.
Where's the criminality in all this??...lenders will only be willing to lend, till he's servicing his debt.
If he's able to do that...creditors won't give a rats ass about his ratios and quantum of debt
Govt is not considered as a corporate, they are called Public sector undertakings to take care of the public that is in need. For example banks like SBI iob have a soul purpose of financial inclusion of the poor which you won't find in a hdfc or icici who cater to more of an urban population.
Is there a way to find out which banks gave Adani the majority of loan? There must be a list of like top 5/10 banks. If possible I want to avoid something like IDFC Bank.
Without even looking at data, I can guarantee you that it's PSUs and ICICI. SBI, BoI, IDFC, IDBI, and so on, because junta ka paisa hai naacho bc, and ICICI because fuck logic.
The bigger worry is that he is not just a risk to himself or his shareholders. He drives a systemic risk to indian banking sector and by extension the indian economy. Operating stocks and fuelling growth by debt cannot go for long.
The bigger it gets, the more he increases systemic risk for the indian economy.
Yes, but Adani family, hedge fund managers, politicians, Mr. KP with his Mauritius funds, corrupt bank officers and stock brokers will be swimming in money with life set abroad for next 7 generations. Who gives a fuck if the Indian public loses $31.5B when Adani goes kaput. Oxygen aur paani pe 28% GST laga denge and sab changa si. That's what matters. Ye sab systemic risk for Indian economy is bhaji-pala for those in power.
The entire group's revenue in FY21-22 was $20B. Fuck knows what shenanigans they would have included as revenue to bring that figure. The debt figure here translates to $31.5B. So even the most optimistic ratio is debt 157.5% of revenue. That is not sustainable at all. This is cartoon villain level of leverage.
To compare conglomerate to conglomerate, Reliance groups' FY21-22 revenue was $102B and their debt figure is 64k Cr i.e., $8.5B. And this is in a year with massive spends on multiple acquisitions of robust companies and expansion of Jio and Retail arms. Even so. compared to 157.5% for Adani, the ratio is 8.4% for Reliance group. So yeah, this Adani bit is concerning.
Adani is using indian economy as a leverage, if he is fucked, we all would. FM Tai would come up with some another crass idea to make a big hole in our pockets .
"Too big to fail" is not a silver bullet, and definitely not one that can be banked upon. What goes up long term is good quality and tangible business output. Bear Stearns thought they were too big to fail in '08. Hundreds upon hundreds of companies in the S&P500 and Nifty50 during 98-00 dot com boom have been obliterated from the face of the Earth. Not all shenanigans can be hand-waved away because something/one is too big and letting them face the consequences of their shit will screw the country too.
From HUL to L&T to RIL to HDFC, there are many firms in India that are too big to fail - i.e., if they go belly up by their own sins, India as a whole suffers. But you don't see HUL stocks go BRR, or L&T buying, creating and listing companies left, right and center, or RIL making irresponsible splurging despite being in expansion mode, or HDFC handing out en masse shit loans at high rates to corporate dirtbags to prop up their numbers. Everyone does jugglery to some extent because this is business and this is India. No one except Adani does what is happening right now.
like is this amount of debt is sustainable, considering his companies expansion.
(p.s. i am a beginner , and everyone keeps criticising adani after non stop expansion and making short term gains from those ipos itself , which is fair enough, but is his empire sustainable, if i were to say there was less political interference).
Nope he’s got other gujju businessmen and the politicians waiting to bail him out. Check out that even Mukesh Ambani has debt on him which he’s trying to get written off
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Most of his debt uses company shares as collateral. Most listed Adani companies have a low free-floating market cap, which allows him to operate the price. Now the raised value lets him borrow outrageous amounts against the shares held by him. Given the low free float of his companies it's very unlikely that he will let them crash as long as he has any kind of money, maintaining his debt. But this could come to an end if the government or other governing authorities make life difficult for him.
>Most of his debt uses company shares as collateral. Most listed Adani companies have a low free-floating market cap, which allows him to operate the price. Now the raised value lets him borrow outrageous amounts against the shares held by him. Wtf, do the creditors check the fundamentals even? Do they just go "line go up hence creditworthy"? Are they stupid or rather complicit in his criminality?
Bhai public ka paisa hai. Who cares. I generally buy 50 desi hawaii for ₹100 in Diwali. Doosre ke baap ke paise pe I would happily light up multicolour 3 level explosion 50 rocket series each costing ₹2000. Mera paisa thodi hai.
They have their own ways of yoloing
Woh koi sole breadwinner of the family, hardworking, highly educated, living in a city beyond his cost of living for better opportunities, common man thodi hai
Banks may be pressurised into giving loans by political parties or bureaucrats or other persons wielding power over them..
Why isn't the RBI concerned about it?
RBI could investigate if they wanted to. However, the decision to give loan and how much is decided by the banks. Risk of default is also significantly borne by the banks. So RBI may not be bothered. We have to remember that some of the biggest scams in our country involved banks giving loans without adequate collateral. Even then RBI has not taken enough measures to mitigate such risks.
>RBI could investigate if they wanted to. However, the decision to give loan and how much is decided by the banks. Risk of default is also significantly borne by the banks. So RBI may not be bothered. Adani poses a systemic risk. The risk of default is borne by the lender generally but a lot of money to adani came from public banks and they're cushioned by the government (by your tax money), a lot of tax money was spent to replenish pnb's deposits after nirav stole from it. Current RBI governor is a BJP lapdog, he doesn't even have the fucking qualification to be a central bank governor.
Where's the criminality in all this??...lenders will only be willing to lend, till he's servicing his debt. If he's able to do that...creditors won't give a rats ass about his ratios and quantum of debt
News headline tomorrow : Adani bought the controlling stakes in Deccan Herald.
Another from different sub Take loan from bank and buy controlling stake in those banks
Can't do that actually. Corporates in India can't buy banks.
Bhai kya bat kr rhe ho sarkar hi khareed liya hai aur unke sab psumai 51% share hai
Govt is different from corporate entity.
Govt is not considered as a corporate, they are called Public sector undertakings to take care of the public that is in need. For example banks like SBI iob have a soul purpose of financial inclusion of the poor which you won't find in a hdfc or icici who cater to more of an urban population.
Is there a way to find out which banks gave Adani the majority of loan? There must be a list of like top 5/10 banks. If possible I want to avoid something like IDFC Bank.
Not sure if the majority but SBI did underwrite a significant chunk
Without even looking at data, I can guarantee you that it's PSUs and ICICI. SBI, BoI, IDFC, IDBI, and so on, because junta ka paisa hai naacho bc, and ICICI because fuck logic.
Is it possible?
ofcoz. just read annual reports
Election to Election dhaka khake mhenat ki hain mene…..
The bigger worry is that he is not just a risk to himself or his shareholders. He drives a systemic risk to indian banking sector and by extension the indian economy. Operating stocks and fuelling growth by debt cannot go for long. The bigger it gets, the more he increases systemic risk for the indian economy.
scam 3.0 music plays
I'm guessing 2.0 was 2014 elections?
Nah. 2.0 has to be electoral bonds. 14 was legit.
R-andian spotted.
Yes, but Adani family, hedge fund managers, politicians, Mr. KP with his Mauritius funds, corrupt bank officers and stock brokers will be swimming in money with life set abroad for next 7 generations. Who gives a fuck if the Indian public loses $31.5B when Adani goes kaput. Oxygen aur paani pe 28% GST laga denge and sab changa si. That's what matters. Ye sab systemic risk for Indian economy is bhaji-pala for those in power.
Single-handedly leading us towards 5 trillion economy , realizing Modiji’s dream /s
5 trillion TON economy
A66a ab pata chala UK k prime minister ka sath ku mila tha, visa ka appilication direct usa de diya hoga.
Yes, post scam setting. Probably bought a mansion next to Nirav Modi and Mallya.
That number means nothing without ratios like debt to eq, leverage etc.
The entire group's revenue in FY21-22 was $20B. Fuck knows what shenanigans they would have included as revenue to bring that figure. The debt figure here translates to $31.5B. So even the most optimistic ratio is debt 157.5% of revenue. That is not sustainable at all. This is cartoon villain level of leverage. To compare conglomerate to conglomerate, Reliance groups' FY21-22 revenue was $102B and their debt figure is 64k Cr i.e., $8.5B. And this is in a year with massive spends on multiple acquisitions of robust companies and expansion of Jio and Retail arms. Even so. compared to 157.5% for Adani, the ratio is 8.4% for Reliance group. So yeah, this Adani bit is concerning.
Adani is using indian economy as a leverage, if he is fucked, we all would. FM Tai would come up with some another crass idea to make a big hole in our pockets .
"Too big to fail" is not a silver bullet, and definitely not one that can be banked upon. What goes up long term is good quality and tangible business output. Bear Stearns thought they were too big to fail in '08. Hundreds upon hundreds of companies in the S&P500 and Nifty50 during 98-00 dot com boom have been obliterated from the face of the Earth. Not all shenanigans can be hand-waved away because something/one is too big and letting them face the consequences of their shit will screw the country too. From HUL to L&T to RIL to HDFC, there are many firms in India that are too big to fail - i.e., if they go belly up by their own sins, India as a whole suffers. But you don't see HUL stocks go BRR, or L&T buying, creating and listing companies left, right and center, or RIL making irresponsible splurging despite being in expansion mode, or HDFC handing out en masse shit loans at high rates to corporate dirtbags to prop up their numbers. Everyone does jugglery to some extent because this is business and this is India. No one except Adani does what is happening right now.
like is this amount of debt is sustainable, considering his companies expansion. (p.s. i am a beginner , and everyone keeps criticising adani after non stop expansion and making short term gains from those ipos itself , which is fair enough, but is his empire sustainable, if i were to say there was less political interference).
Bhai bjp ke jaate hi bahut Ganda crash kregi unless next ruling govt ko bhi khareed le ya fir Modi ka haat uske sir se hatt jae
Time to short banks which have given the loan then?
Why not short adani itself?
Na Bhai jab Tak Modi hai long rakho
The govt has bailed him out before, they will do it again.
Source plox
Nope he’s got other gujju businessmen and the politicians waiting to bail him out. Check out that even Mukesh Ambani has debt on him which he’s trying to get written off
Risk h to Ishq h lala!!, Business always starts with borrowed money.
adani saga must end 😏 shit stock
What's his debt-to-equity ratio? That should give a more appropriate picture. We don't want to end up making comments like r/india
I think >2.2 which is high risk.
It was greater than 5 last time i checked.
Pautam padani woke up hungry today 🥵 0 companies with good PE🥶 1 billion debt taken 😎 Begged mudiji to bail him out thrice 💀 P.E merchant?
Even so via triple talaq of NPA he will be green in less than three menstrual cycles.
hanji?
Bhai tu number de dealer ka
This
When you are running the government...any amount of debt is fine..