BackAdani group pledges shares of these flagship companies in SBICAP Trustee. Details here
SBICAP Trustee said it had received the pledges in its capacity as ‘security trustee’ of the lenders of Adani Enterprises
PremiumThe three companies of Adani group companies have pledged shares for the benefit of the lenders in conglomerate's flagship of Adani Enterprise, said SBICAP Trustee.
Adani Ports and Special Economic Zone, Adani Transmission Ltd and Adani Green Energy Ltd pledged shares to SBICAP Trustee Co, according to the regulatory filings of the companies.
According to the regulatory filing, Adani Ports and Special Economic Zone has pledged additional 75,00,000 shares, i.e., 0.35 per cent. SBICAP Trustee earlier held 0.65 per cent thus taking the total to 1 per cent.
Similarly, Adani Transmission has pledged additional 13,00,000 shares, i.e., 0.11 per cent, and the trustee earlier held 0.44 per cent thus taking the total to 0.55 per cent.
While, for Adani Green, has pledged additional 60,00,000 shares i.e., 0.38 per cent taking the total to 1.06 per cent up from 0.68%.
SBICAP Trustee said it had received the pledges in its capacity as ‘security trustee’ of the lenders of Adani Enterprises.
"As part of the Standby LC facility of USD 300 mio, provided by SBI for Adani group's Carmichael project in Australia, there is an additional collateral by way of pledge of shares of 3 group companies. The required collateral coverage of 140% is reviewed as at the end of each month and any shortfall on account of MTM is required to be topped up. There have been a top up each in the months of June and July 2022 and the third such top up was done on 8th Feb 2023 after a review as on 31st Jan 2023," said a spokesperson of State Bank of India.
"Being the Security Trustee, SBI Cap Trustee Company, is required to file the same with SEBI and it is being complied by them each time whenever there is a change in number of shares pledged," he added.
"With this latest tranche, the % of shares that is pledged towards this project, aggregates to 1.06%, 1.00% and 0.55% of equity shares of Adani Green, Adani Ports and Adani Transmission, respectively."
"It is clarified that such a share pledge is only as additional collateral security over and above the project assets and no additional finance is extended by SBI against such shares pledged."
The Adani group, led by billionaire Gautam Adani, has lost more than $100 billion in market value since January 24, after a US based short seller Hindenburg Research accused the group of stock manipulation and improper use of offshore tax havens.
The conglomerate has rejected the firm's findings and denied any wrongdoing.
State Bank of India's exposure to the group was 0.9% of its loan book, or around 270 billion Indian rupees ($3.3 billion), Chairman Dinesh Kumar Khara has said.
The National Stock Exchange (NSE) has removed two Adani group stocks — Adani Ports & Special Economic Zone and Ambuja Cements — from the short term Additional Surveillance Measure (ASM) framework. The move will become effective from 13 February 2023.
The NSE had put these two Adani stocks under ASM framework on 3rd February 2023 after huge sell off in Adani group stocks in the wake of Hindenburg Research report raising concern over the debt positioning of Adani group companies.
Moody’s Investors Service on Friday downgrades the outlook on four out of the eight Adani Group companies it rates to negative from stable, in a move that could have short-term implications for the embattled group’s fundraising ability.
The rating company also retained the outlook for the other four companies and affirmed the ratings for all eight, as the fallout from US short-seller Hindenburg Research’s allegations of fraud continues to lash the ports to energy and edible oils firm.
“These rating actions follow the significant and rapid decline in the market equity values of the Adani Group companies following the recent release of a report from a short-seller highlighting governance concerns in the group," Moody’s said in a statement.
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