Adani Group pre-pays ₹7,374 cr worth share-backed financing
The ports-to-airport conglomerate's management said the Adani Group has prepaid share-backed financing of ₹7,374 crore
PremiumThe scandal-hit Adani Group on Tuesday said it has prepaid share-backed financing of ₹7,374 crore, as part of its promoters' commitment to cut overall leverage backed by Adani listed company shares after a short-seller attack.
The move comes as the Adani Group holds a worldwide roadshow as management seeks to reassure investors that the company’s finances are under control amid share price falls and a regulatory probe.
The company will hold meetings with fixed-income investors from 7 to 15 March in Dubai, London and the US. The US meetings will be held over four days, including New York and Los Angeles. Similar gatherings were held this week in Singapore and Hong Kong, according to a Bloomberg report.
“In continuation of promoters’ commitment to reduce the overall promoter leverage backed by Adani Listed Company shares, we would like to inform that we have prepaid share backed financing of ₹7,374 cr ($902 Million) ahead of its latest maturity in April 2025," the Adani Group said in a statement.
With the repayment to multiple international banks and Indian financial institutions, the following Adani listed company shares shall be released:
- Adani Ports & Special Economic Zone Ltd: 155 million shares, representing 11.8% of the promoters’ holding
- Adani Enterprises Limited : 31 million shares, representing 4.0% of promoters’ holding
- Adani Transmission Limited : 36 million shares, representing 4.5% of promoters’ holding
- Adani Green Energy Limited: 11 million shares, representing 1.2% of promoters’ holding
"Along with the repayments done earlier in the month of February, Adani has prepaid USD 2,016 million of share backed financing, which is consistent with promoters’ commitment to prepay all share backed financing before 31 March 2023," the group said.
Adani stocks
Stocks of eight listed firms of the embattled conglomerate Adani settled with gains on Monday and Adani Enterprises rose more than five per cent amid positive momentum in the broader equity market.
Last week, shares of all listed Adani Group companies rallied after the group sold minority stakes in four of its listed companies to US-based boutique firm GQG Partners for ₹15,446 crore.
After taking a beating on the bourses following a report by US-based short seller Hindenburg Research, the group stocks have recovered significantly in the last few trading sessions.
The report had made a litany of allegations, including fraudulent transactions and share-price manipulation, against it.
Adani, led by billionaire Gautam Adani, has rejected the allegations and denied any wrongdoing.
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