Adani eyes ARC biz to buy stressed assets in infra, real estate
MUMBAI : Adani Group has applied for a licence from the Reserve Bank of India to open an asset reconstruction company (ARC) that will acquire distressed assets in infrastructure and real estate, two people familiar with the matter said.
“The plan has been in the making for at least eight months, and the application was filed earlier this year. The group is waiting for the nod from RBI," one of the two people cited above said. The ARC will buy bad loans in distressed entities where the group has a strategic interest, the second person added.
The Adani Group owns Adani Capital, a non-banking financial company (NBFC), which is allowed to purchase bad loans under RBI norms. However, using an NBFC for this purpose would lead to the accumulation of NPAs in its book; so typically, corporates set up special purpose vehicles for buying NPAs. Generally, most bad assets on sale are bought by ARCs.
An email sent to an Adani group spokesperson remained unanswered.
In the past two years, the Adani group has profited significantly by acquiring distressed assets in infrastructure, specifically ports. Its flagship company—Adani Ports and Special Economic Zones Ltd (SEZ)—in February completed the acquisition of Dighi Port Ltd under the Insolvency and Bankruptcy Code for ₹705 crore. In 2021, it bought the Krishnapatnam and Gangawaram ports. With these additions, Adani Ports now controls 30% of India’s port traffic.
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