Adani Group has lately succeeded in clearing Rs 7,374 Cr which was a share-backed loan. Now the group is proceeding to go debt-free this month only. The repayment is going to help release pledges on shares of promoters in 4 companies belonging to the group.
The Hindenburg controversy has proved too fatal to Adani Group. Now the group has announced positivity in the market saying that it has prepaid Rs 7,374 crore which is in dollars more than $900 million.
The share-backed financing was made by various domestic and international financial institutions and now two years prior to the latest maturity date of the loan, the repayment has been done. The top Indian conglomerate pledges to prepay all remaining loans going debt-free by the end of this month.
Adani group plans to cut overall promoter leverage which is backed by shares of its listed companies, and the move is a part of the same plan. In accordance with the plan, irrespective of the maturity dates, the group is to repay all share-backed financing this month only by March 31 this year.
Release of 4 of the Group’s listed shares – 155 million shares (11.8% of promoters’ holding) of Adani Ports & Special Economic Zone, 36 million shares (4.5%) of Adani Transmission Limited, 31 million shares (4%) of Adani Enterprises Limited, and 11 million shares (1.2%) of Adani Green Energy Limited, could be possible with the repayment of the huge amount.
As per the statement issued by Adani group, “Adani Group would like to inform that we have prepaid share supported financing of Rs 7,374 crore prior to its latest maturity date after two years on April 2025. This is in continuation of promoters’ commitment towards reducing overall promoter leverage which is supported by Adani listed company shares.”
Adani Group together with the repayments made one month ago in February 2023, has so far prepaid payments of around $2,106 million of share-backed loans.
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Significantly, the development takes place exactly when Adani group begins with its line-up of roadshows in Dubai, London, and across America. The roadshow tour may prove to be an attempt to regain investors’ lost confidence, both globally and at home after the shares of 10 of the Group’s listed companies proceeded on a downward spiral after the scathing report by Hindenburg Research, a US short-seller.
