The brand of the Adani group. File
| Photo Credit: Reuters
Embattled Adani Group on March 7 mentioned it has repaid share-based financing of ₹7,374 crores (over $900 million) and can prepay all such remaining loans by the tip of the month, because it appears to allay issues over leverage and debt to win over traders.
The compensation will launch pledge on shares of promoters in 4 group corporations, it mentioned in a press release, including that along with repayments completed earlier, the group has pay as you go $2.016 billion of share-backed financing.
In September final 12 months, CreditSights, a Fitch Group unit, mentioned the group was “deeply overleveraged” because it used debt to develop an empire centred on ports and coal mining to incorporate airports, knowledge centres and cement in addition to inexperienced vitality.
In a January 24 report, U.S. short-seller Hindenburg Research flagged “substantial” debt ranges on the group whereas alleging accounting fraud and use of offshore shell corporations to inflate inventory costs.
The Group has denied all Hindenburg allegations, calling them “malicious”, “baseless” and a “calculated attack on India”.
A month after the damning report by Hindenburg lopped off $135 billion in market worth from Adani group’s listed corporations, the conglomerate is hoping to claw again the narrative by selecting gradual and regular progress over the breakneck, largely debt-fuelled, growth spree of current years.
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It has already scrapped a ₹7,000 crore coal plant buy, determined to not bid for a stake in state-backed vitality buying and selling agency PTC, reined in bills, repaid some debt and promised to repay extra.
“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 ₹7,374 crore ahead of its latest maturity in April 2025,” the assertion mentioned.
As a lot as 31 million shares, or 4% stake, of promoters within the group’s flagship agency Adani Enterprises Ltd. will likely be launched from pledge whereas in Adani Ports & Special Economic Zone Ltd (APSEZ), promoters will launch pledges on 155 million shares or an 11.8% stake.
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In the case of Adani Transmission Ltd, pledges over 36 million shares, representing 4.5% of promoters’ holding, will likely be launched. Similarly, in Adani Green Energy Ltd, pledges over 11 million shares or 1.2% of promoters’ holding, will likely be launched.
“Along with the repayments done earlier in the month of February, Adani has prepaid $2.016 billion of share-backed financing, which is consistent with promoters’ commitment to prepay all share-backed financing before March 31, 2023,” it mentioned.
Adani Group’s gross debt has doubled within the final 4 years. It has virtually $2 billion worth of foreign-currency bonds developing for compensation in 2024.
The conglomerate borrowed over $10 billion in international foreign money bonds between July 2015 and 2022 throughout group corporations. Of this, $1.15 billion of bonds matured in 2020 and 2022.
The group’s gross debt has grown from ₹1.11 lakh crore in 2019 to ₹2.21 lakh crore in 2023, in accordance with a presentation made to traders final month.
After together with money, the online debt was ₹1.89 lakh crore in 2023.
