India’s Adani Group plans to scale down its capital expenditure plans, newspaper Mint reported on Monday, citing people close to the development, after the group’s flagship firm closed a $2.5 billion share sale.
The newspaper reported that the group may moderate its capex plans in some of its businesses, while providing more collateral in the form of stock pledging to lenders.
The Adani Group did not immediately respond to a Reuters request for comment outside business hours.
The newspaper said the company could look at 16-18 months for growth in some businesses instead of the target of 12 months, adding that Adani would return to its normal pace of growth once normalcy returns.
Mint said the group will use alternative funding channels for funding projects from internal resources, promoter equity funding and private placement.
Additionally, domestic lenders to the Adani group do not plan to cut off the group from using sanctioned but unused credit lines for fear they may have to withdraw, Mint said in a separate report citing bankers.
Shares of the Adani group companies have lost more than half of their combined market value of more than $100 billion after US short-seller Hindenburg Research raised questions in January about the group’s debt levels and use of tax havens. was raised
Soon after, group firm Adani Enterprises stopped the share sale.