According to the Adani Group, it has fully prepaid a $2.15 billion margin-linked share-backed loan and enhanced ownership in its subsidiary Ambuja by returning a $500 million credit used for acquisition financing.
“Adani has executed the full payoff of margin linked share backed financing totaling USD 2.15 billion, far ahead of the agreed deadline of 31 March 2023, as part of the promoters’ obligation to repay the promoter leverage. In addition to the aforementioned, the promoters have also paid off USD 500 million in borrowings for the financing of the Ambuja acquisition “announced the Adani Group in a statement.
This is consistent with the promoters’ “promise,” according to the corporation, to boost equity investment. With this, the promoters will have invested $2.6 billion out of the $6.6 billion total acquisition value of Ambuja and ACC.
The business continued, “The whole $2.65 billion prepayment programme has been completed in less than six weeks, which attests to the robust liquidity management and access to capital at sponsor level, supporting the solid capital prudence applied by all portfolio companies.
To lessen overall promoter leverage backed by Adani business shares, the Gautam Adani-led group prepaid share-backed loan of 7,374 crore ($902 million) before to maturity in April 2025. The shares of the four Adani listed companies—Adani Ports & Special Economic Zone Ltd, Adani Enterprises Ltd, Adani Transmission Ltd, and Adani Green Energy Ltd—will become available following this repayment.
A total of 155 million shares of Adani Ports, representing 11.8% of the promoters’ holdings, 31 million shares of Adani Enterprises, representing 4% of the promoters’ holdings, 36 million shares of Adani Transmission, representing 4.5% of the promoters’ holdings, and 11 million shares of Adani Green Energy, representing 1.2% of the promoters’ holdings, will also be released.
The developments take place against the backdrop of a recent contentious report by the US short-seller Hindenburg Research, which led to a severe sell-off in the equities of the Adani group. The market value of the stocks decreased overall by approximately 12 lakh crore in the more than a month following the report’s release on January 24, 2023.
The listed companies in the Adani portfolio, including Adani Ports and Special Economic Zone, Adani Green Energy, Adani Transmission, and Adani Enterprises, completed secondary block trade transactions totaling 15,446 crore earlier this month, according to GQG Partners, a renowned US-based global equity investment boutique.
Following mixed trading last Friday, the shares of nine out of ten Adani group firms that are publicly traded increased on Monday. Adani Green, Adani Power, Adani Transmission, Adani Total Gas, Adani Wilmar, and NDTV are trading close to or have reached the upper circuit by trading up at 4.99%, 4.98%, 5%, 5%, 3.26%, and 3.25%, respectively. Flagship company Adani Enterprises rallied and is currently trading 3.78% up in the early trade. Ambuja Cements stock is also up today by 1.26%, and Adani Ports and Special Economic Zone stock is up by 0.92%. Only the ACC stock is declining in price by 0.049%.
Importantly, between July 2015 and 2022, the company borrowed approximately $10 billion in foreign currency debts, of which $1.15 billion of loans matured in 2020 and 2022. The $650 million Adani Ports debts must be repaid in 2024, while the $750 million and $500 million Adani Green Energy bonds will mature the following year.
