Adani group prepays $1.1 bn loans, releases pledged shares in 3 companies
Premium- The promoter's early payment will help release 168.27 million shares of Adani Ports & Special Economic Zone, 11.77 million shares of Adani Transmission, and 27.56 million shares of Adani Green Energy
Mumbai: The promoter of Adani group companies will prepay $1.11 billion in loans ahead of their maturity and release pledged shares in three companies amid a meltdown in the group's stocks following a US short seller Hindenburg Research’s report alleging fraud and manipulation against the promoter.
According to a company statement, the promoter's early payment will help release 168.27 million shares of Adani Ports & Special Economic Zone Ltd, 11.77 million shares of Adani Transmission Ltd, and 27.56 million shares of Adani Green Energy Ltd.
“In light of recent market volatility and in continuation of the promoters’ commitment to reduce the overall promoter leverage backed by Adani Listed Company shares, we are pleased to inform that promoters have posted the amounts to prepay USD1,114 million ahead of its maturity of Sep 2024", according to a statement.
Adani Ports gained around 9% to close at a provisional ₹541.90 on the National Stock Exchange, while Adani Transmission and Adani Green remained locked at the 10% and 5% lower circuits.
Mint first reported on the Monday that Adani group plans to completely reduce its share pledges, citing an executive close to the development .
“We will pay down all our share-backed loans, 100% of them; that will happen very shortly. Second, we will build up more cash buffers in these businesses, they are already very strong, and this will be demonstrated …....when the results are out," he said.
The promoter group’s share pledge in Adani Ports, Adani Transmission, Adani Enterprises and Adani Green stood at 17%, 7%, 4%, and 3%, respectively, as of 31 December, according to company disclosures. With the fall in stock prices over the last week, these pledges increased by about 20%, with Adani Ports’ share pledge, for example, climbing to 20.6% of the promoter’s holdings.
