Active Stocks
Thu Mar 28 2024 13:59:22
  1. Tata Steel share price
  2. 155.60 1.80%
  1. HDFC Bank share price
  2. 1,454.10 0.93%
  1. Power Grid Corporation Of India share price
  2. 277.55 2.40%
  1. ITC share price
  2. 430.95 0.69%
  1. State Bank Of India share price
  2. 755.20 2.88%
Business News/ Companies / Adani Group fully prepays $2.65 billion share-backed financing
BackBack

Adani Group fully prepays $2.65 billion share-backed financing

This latest development arrived two days after Financial Times report, that suggested Adani group was mulling to issue a formal request to global lenders to sell 4-5 percent stake in Ambuja Cement for $450 million to reduce debt.

FILE PHOTO: FILE PHOTO: The logo of the Adani group is seen on the facade of one of its buildings on the outskirts of Ahmedabad, India, April 13, 2021. REUTERS/Amit Dave/File Photo/File Photo (REUTERS)Premium
FILE PHOTO: FILE PHOTO: The logo of the Adani group is seen on the facade of one of its buildings on the outskirts of Ahmedabad, India, April 13, 2021. REUTERS/Amit Dave/File Photo/File Photo (REUTERS)

Gautam Adani-led Adani Group on 12 March said that it has completed full prepayment of margin linked share backed financing aggregating to $2.15 billion, ahead of its committed timeline of 31 March, 2023.

This latest development arrived two days after Financial Times report, that suggested Adani group was mulling to issue a formal request to global lenders to sell 4-5 percent stake in Ambuja Cement for $450 million to reduce debt.

Apart from this, the firm said that promoters have also prepaid $500 million facility taken for Ambuja acquisition financing.

ALSO READ: Gautam Adani to sell stake in cement business for $450mn to reduce debt: Report

The group mentioned that the move is in line with promoters’ commitment to increase equity contribution and promoters have now infused $2.6 billion out of total acquisition value of $6.6 billion for Ambuja and ACC.

Six Weeks:

As per details, the prepayment program of $2.65 billion has been completed within 6 weeks, that supports supplements the solid capital prudency adopted at all portfolio companies.

On 10 March, Financial Times reported that Adani Group was doing this to restore investor confidence in the conglomerate reeling from allegations made by US short seller Hindenburg Research.

Last week, Bloomberg had reported that Adani Group has repaid a $500-million bridge loan that was due on 9 March. Also on Wednesday, SBICap Trustee said more shares belonging to some Adani Group companies have been encumbered.

Meanwhile, investment firm GQG Partners has bought stake worth 15,446 crore in three Adani Group Companies through block deals. This was the first major investment in the group since US short-seller's explosive report sparked a stock rout.

In 2022, Gautam Adani's Group completed the acquisition of major Indian cement players, Ambuja Cements and ACC for in a $10.5-billion deal and with this, it has become the second largest cement player in the country.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

ABOUT THE AUTHOR
Saurav Mukherjee
A business media enthusiast...believe to listen more, than just blabbering like others.
Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 12 Mar 2023, 09:28 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App

Chat with MintGenie