Adani Group prepays loans of Rs 7,374 crore

$2.01 bn share-backed loans prepaid since Feb; to repay all by March 31.

Adani repayment, Adani share price, Adani enterprises, adani ports, adani transmission
Promoters held 65.1% stake in Adani Ports & Special Economic Zone and 72.6% stake in Adani Enterprises as on December 31.

The Adani Group on Tuesday said it has prepaid Rs 7,374 crore of share-backed financing to international banks and Indian financial institutions.

“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 Rs 7,374 crore ($902 million) ahead of its latest maturity in April 2025,” the group said in a release said.

It also comes ahead of the group’s reported investor roadshow scheduled between March 7 and March 15 in London, Dubai and the US.

Following the repayment, 155 million shares representing 11.8% of promoter holding in Adani Ports & Special Economic Zone will be released, as will be 31 million shares representing 4% of promoter holding in Adani Enterprises. Promoters held 65.1% stake in Adani Ports & Special Economic Zone and 72.6% stake in Adani Enterprises as on December 31.

Further, 36 million shares representing 4.5% of Adani Transmission’s promoter holding will be freed, and 11 million shares (1.2% of promoter holding) in Adani Green Energy will be released. Promoters hold 74.2% stake in Adani Transmission and 60.75% stake in Adani Green as on December 31.

“Along with the repayments done earlier in February, Adani has prepaid $2.01 billion of share-backed financing, which is consistent with promoters’ commitment to prepay all share-backed financing before March 31, 2023,” the group said.

In February, Adani Group had prepaid $1.1 billion in share-backed financing to release of 27.56 million shares, representing 3% of promoters’ pledged holding in Adani Green Energy.

The repayment comes on the heels of US boutique investment firm GQG Partners buying shares worth $1.87 billion (`15, 446 crore) in four Adani Group companies — Adani Enterprises, Adani Ports and Special Economic Zone, Adani Green Energy and Adani Transmission. This was the first major investment in the Indian conglomerate since a short-seller’s critical report sparked a stock rout.

On January 25, US short-seller Hindenburg Research had come out with a scathing report on the Adani Group, resulting in a massive selloff in the shares of the group’s companies and Adani Enterprises calling of a follow-on offer of Rs 20,000 crore.

The group’s market cap tumbled by over 7 trillion during the past month. It has since recovered by around2 trillion in the past few trading sessions.

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First published on: 08-03-2023 at 04:20 IST
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