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The Adani Group has prepaid share-backed borrowing of INR 7,374 Crs (USD 902 Million) ahead of its latest maturity in April 2025 as part of the promoters’ pledge to minimize total promoter leverage backed by Adani Listed Company shares. The following Adani Listed Company shares were issued upon repayment of INR 7,374 crores to different International Banks and Indian financial institutions:
- Adani Ports & Special Economic Zone Ltd: 155 million shares, accounting for 11.8% of the promoters’ stake.
- Adani Enterprises Limited: 31 million shares, accounting for 4.0% of the promoters’ stake.
- Adani Transmission Limited: 36 million shares, accounting for 4.5% of the promoters’ stake.
- Adani Green Energy Limited: 11 million shares, accounting for 1.2% of the promoters’ stake.
Adani has paid USD 2,016 million of share-backed financing, in addition to the Adani debt repayments made earlier in February, consistent with the promoters’ pledge to prepay all share-backed debt by March 31, 2023.
Adani stocks
On March 6, 2023, the stocks of eight listed enterprises of the conglomerate Adani settled with gains, and Adani Enterprises surged more than 5% amid favourable momentum in the larger share market. Before that week, shares of all Adani Group listed firms rose after the Group sold minority investments in four of its listed companies to US-based boutique firm GQG Partners for Rs 15,446 crore.
Following a report by US-based short seller Hindenburg Research, the Group’s equities had rebounded dramatically in the previous few trading sessions. The study leveled several claims against it, including illegal transactions and share-price manipulation. Adani Group, founded by billionaire Gautam Adani, has refuted all charges of misconduct related to the Adani debt case.
The Adani Group, led by billionaire Gautam Adani, has been working to alleviate worries about its credit profile
Adani Green Energy and Adani Transmission promoters would renounce 1.2 percent and 4.5 percent interests, respectively. After a US-based short seller accused the Adani Group, billionaire Gautam Adani-led Adani Group has been working to alleviate worries about its credit rating. All charges have been disputed by the organization, which has called them “malicious,” “baseless,” and a “calculated attack on India.”
According to a PTI report, Adani Group has about $2 billion in foreign-currency bonds to be repaid in 2024. Adani Group officials, including Group Chief Financial Officer Jugeshinder Singh, reassured investors that the company’s finances and the Adani debt case are under control. Executives informed investors that they plan to meet forthcoming debt maturities by selling private placement notes and utilizing cash from operations.
Adani has paid USD 2.016 billion of share-backed borrowing, in addition to the repayments made earlier in February
The Adani Group has prepaid share-backed financing of Rs 7,374 crore ahead of its latest maturity in April 2025 as part of the promoters’ pledge to minimize total promoter leverage backed by Adani-listed company shares. Deposits of over 36 million shares, representing 4.5 percent of the promoters’ stake, will be released by Adani Transmission Ltd. Similarly, about 11 million shares, or 1.2% of the promoters’ ownership, would be distributed by Adani Green Energy Ltd.
Adani has paid USD 2.016 billion of share-backed financing in addition to the repayments made earlier in February, consistent with the promoters’ pledge to prepay all share-backed debt by March 31, 2023. The payments made by Adani prove that the Adani debt case is nothing more than creating a controversy about the Group.
Adani Group starts a road tour with bondholders to regain their faith after the Adani debt case controversy
The Adani Group has begun a three-day road show after the Adani debt controversy with its bondholders to regain their faith after the damning Hindenburg report prompted a month-long stock market crash of its shares. While there was no official response from the Group, the discussions were held at Singapore’s Capitol Kempinski Hotel by about 12 worldwide banks. Well-known brands like BNP Paribas, DBS Bank, Standard Chartered Bank, Deutsche Bank, ING, MUFG, and Mizhuo organized the roadshow.
Jugeshinder Singh, Group chief financial officer, and Anupam Misra, head of corporate finance, represented the Adani Group. Sessions at the Barclays Plc office in Hong Kong will follow the Singapore conference. Since the report’s release, the organization has contacted global bondholders several times. It has issued a credit note stating there is no significant re-financing risk or necessity for near-term cash.
The Group’s cash flow from its diverse assets across the listed firms is expected to be Rs 44,078 crore, more significant than its debt of Rs 23,590 crore.
Conclusion
The Adani Group has made many efforts to decrease its leverage and reassure investors about its financial health, including repurchasing shares from promoters and prepaying all share-backed debt by March 31, 2023. In addition, the Group has engaged with bondholders to address their concerns and rebuild their trust. These steps will strengthen the Adani debt profile and market status in the long run.
