Have Prepaid Share-Backed Financing Of Rs 7,374 Crore: Adani Group

Adani Group is scheduled to hold meetings with fixed-income investors from 7 March 2023 to 15 March 2023 in Dubai, London and the US.

New Delhi: Adani Group on Tuesday has announced that it has prepaid share-backed financing of Rs 7,374 crore, as part of its promoters’ commitment to cut overall leverage backed by Adani listed company shares. The move comes amid the embattled Indian conglomerate’s worldwide roadshow reassuring investors that the company’s finances are under control amid share price falls and a regulatory probe.

Adani Group is scheduled to hold meetings with fixed-income investors from 7 March 2023 to 15 March 2023 in Dubai, London and the US. The meetings in US 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.

According to Mint, 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.

The shares of eight out of ten Adani listed companies rose Monday close to (or more than) 5 per cent in the Indian equity market. ACC and Ambuja Cement, however, dipped 1.49 per cent and 1.62 per cent respectively on the NSE.

Until a week ago, Adani Group listed companies were facing a continuous downfall, ever since the publication of Hindenburg Research’s report on 24 January 2023 accusing the Indian conglomerate of improper use of offshore tax havens and stock manipulation.

However, Adani Group stocks have recovered significantly over the last week. Adani Enterprises share price has gone up by 77.98 per cent, Adani Power share price has gone up by 34.25 per cent, Adani Ports & SEZ share price has gone up by 24 per cent, Adani Wilmar share price has gone up by 34.29 per cent, Adani Green Energy share price has gone up by 34.32 per cent — in the last five days.