Adani Group plans to prepay ₹7,000-8,000 cr worth of loans in up to 45 days
1 min read . Updated: 06 Feb 2023, 11:54 AM IST
Premium- The conglomerate aims to reduce its LAS exposure with effect immediately and bring it to zero in 30-45 days
Adani group, led by Gautam Adani, is looking to prepay its debt of ₹7,000-8,000 crore from its loans against shares (LAS) portfolio to allay fears.
The conglomerate aims to reduce its LAS exposure with effect immediately and bring it to zero in 30-45 days, report Economic Times quoting sources. According to the report, the a formal decision may be taken as early as today.
Mint could not independently confirm the development.
Adani's exposure of about ₹7,000-8,000 crore towards loans against shares is backed by share pledges.
The move would see lenders release some of the stocks in Adani Group companies that were pledged as collateral.
On January 25 morning (India time), Hindenburg Research released a report against the Adani group and Adani family members alleging them of fraud. The report claimed that the US-based research firm holds short selling bets on the group company.
Since then, the conglomerate, among the top business families in India, has lost a lot in terms of brand value, stock value and credibility. The group has been in firefighting mode and this seems to be another step in the direction to soothe the nervous investors.
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The investors in the Adani stocks are a worried lot given that the 7 group stocks have cumulatively lost more than $100 billion in m-cap.
Valuation guru Aswath Damodaran in his latest blog post said the fair value of Adani Ent stock is at ₹947, much lower than its current market price, which is around ₹1,400. This, in comparison to ₹3,000-level where the stock was in mid-January ahead of its FPO.
