Home / News / India /  Adani in talks to prepay $1.11 bn-loans on shares, denies report on capex cut

Adani Group promoters will pre-pay $1,114 million for release of pledged shares, ahead of maturity in September 2024, the company said in a statement on Monday.

The Adani Group 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", as per an official statement.

Meanwhile, the conglomerate has denied reports that said it was planning to cut back its capital spending.

Adani Group plans to trim its capital spending while providing more collateral in the form of stock pledges to lenders, Mint has reported earlier today.

“At Adani, there is a rethink on the capex. The group may moderate its capex plans in some of the businesses. So, instead of targeted growth over 12 months, they may look at a time frame of 16-18 months for that quantum of growth in certain businesses," the report stated.

Additionally, Adani Group's domestic lenders do not plan to cut off the conglomerate from utilising sanctioned but unused credit lines for fears it could backfire and lead to defaults.

"False report, on the contrary Adani Group is moving to prepay all LAS (Loans Against Shares) finance," a spokesperson for the group said in an emailed statement to Reuters.

Shares of Adani continued their freefall, with the conglomerate's cumulative market value loss topping $110 billion, after US short-seller Hindenburg Research last month raised questions about the group's debt levels and use of tax havens.

In the brutal fallout of Hindenburg's report, investors dumped Adani shares, while the group's flagship company, Adani Enterprises, was forced to abandon a $2.5 billion share sale last week. 

The Adani group has rejected the criticism and denied wrongdoing in detailed rebuttals, but that has failed to arrest the unabated fall in its shares.

Meanwhile, Group Chairman Gautam Adani lost his title as Asia's richest person and slipped down the global rankings of the wealthy.

Shares of Adani Enterprises dipped 9.6% today, taking its market capitalisation losses to nearly $28 billion since the release of the short-seller's report.

Adani Transmission Ltd dropped 10%, while Adani Green Energy Ltd, Adani Total Gas Ltd, Adani Power, and Adani Wilmar fell roughly 5%.

Adani Ports and Special Economic Zone was the only stock to buck the trend, rising 1.2%.

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