Promoters of Adani Group companies said on Monday they have prepaid loans of up to $1.11 billion for the release of pledged promoter shares of some of its listed entities before the maturity date of September 2024. The group said this has been done “in light of recent market volatility and in continuation of the promoters’ commitment to reduce the overall promoter leverage”.
After payment, 12% promoter stake in Adani Ports & SEZ, 3% in Adani Green Energy and 1.4% in Adani Transmission will be released. The group also clarified that the promoters have not pledged shares of its cement subsidiaries ACC and Ambuja Cement.
According to Capitaline data, Adani Group promoters have pledged a stake of 2.66% in Adani Enterprises, 4.36% in Adani Green Energy, 17.31% in Adani Ports, 25.01% in Adani Power and 6.62% in Adani Transmission till December 31, 2022.
As of December-end, Gautam Adani, on behalf of SB Family Trust, held 37% shareholding in Adani Ports, 24.27% stake in Adani Green Energy and 56.48% stake in Adani Transmission, as per data on BSE. Overall, the promoter shareholding is 65.13% in Adani Ports, 60.75% in Adani Green Energy and 74.19% in Adani Transmission.
The move is likely aimed at instilling investor confidence after the recent sell-off of shares of listed entities of the group triggered by the release of the Hindenburg report.
Shares of all Adani Group companies plummeted following several concerns raised by the US-based short-seller, which were further accentuated after media reports that global banking firms Credit Suisse and Standard Chartered had stopped accepting dollar bonds of the conglomerate as collateral. Exchanges have put shares of the group companies under the additional surveillance (ASM) framework.
Last week, Union finance minister Nirmala Sitharaman said there was no significant exposure to the group for country’s top lender State Bank of India and largest insurer LIC. The Reserve Bank of India had put out a note clarifying that loans to Adani Group are within permissible limits.