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in

Does the
Adani Group
Pose A
Danger To The
Economy?
Swipe
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The Adani Group is betting big

on media.

Its latest move in the space:

Buying NDTV.

But this isn't any ordinary

acquisition.
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The NDTV Acquisition Timeline

RRPR Ltd., a promoter of NDTV,

2009
borrows Rs. 403 cr from VCPL.

VCPL gets convertible warrants

2009 against the loan, giving it rights
to 99.9% stake in RRPR.

2019 RRPR fails to pay back the loan.

2022 Adani Group acquires VCPL.

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Now, under the Adani Group, VCPL is

exercising its convertible warrants to
get RRPR's 28.9% stake in NDTV.

This conversion was done without

consulting NDTV's promoters, so
they are calling it a hostile takeover.

But that's not all...

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The Adani Group also wants an

additional 26% stake in the company.
For this:

it is offering current stakeholders

share price of market price of

Rs. 294/share < Rs. 388/share

Despite this the acquisition will cost

Rs. 492.81 crores.

But...
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...this news comes on the same day

that CreditSights said the Adani
Group was "overleveraged".

What does that mean?

Adani has made over 32

acquisitions in the last year alone
which cost Rs. 1.3 lakh crores.

A lot of these acquisitions were

made by...
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...borrowing money from banks.

Company's Total Debt:

Rs. 2.3 lakh crores =
Almost 4X of EBITDA

Because of this, research firm

CreditSights feels that the group
could fall into debt spiral. And...
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...this could be dangerous for the

economy as many banks have
exposure in Adani Group.

But Adani is working on growing

India's economy by investing in
infrastructure.

So, banks continue to support it,

which is a comfort. It also has...
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...people's support as the Adani

Group has given insane returns.
Since 2020:

Adani Enterprises Adani Green Energy

1300% 1300%

Sensex grew only 42%

However, a recession could hurt its

growth and make it spiral into debt.
Do you think Adani Group's
bubble will burst soon or is it
too big to fail? Comment below!

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