Embattled Adani Group stated it has repaid loans aggregating USD 2.65 billion to finish a prepayment programme forward of the March 31 deadline to chop general leverage in an try to win again investor belief put up a damning report of a US quick vendor.
In an announcement launched on Sunday, Adani group stated it has repaid USD 2.15 billion of loans that have been taken by pledging shares within the conglomerate’s listed corporations and likewise another USD 500 million in loans taken for the acquisition of Ambuja Cement.
The announcement comes inside days of the group saying it has pre-paid Rs 7,374 crore (about USD 902 billion) loans that have been taken pledging shares in 4 group corporations. This has now been scaled as much as USD 2.15 billion.
While Adani group has not detailed the supply of cash for compensation of loans, these got here inside days of the promoters promoting minority stakes in 4 listed corporations to US-based GQG Partners for Rs 15,446 crore.
“In continuation of promoters’ commitment to repay the promoter leverage, Adani has completed full prepayment of margin linked share backed financing aggregating to USD 2.15 billion, well before the committed timeline of March 31, 2023,” it stated. “In addition to above, promoters have also prepaid a USD 500 million facility taken for Ambuja acquisition financing.”
This, it stated, was in step with promoters’ dedication to extend fairness contribution and promoters have now infused USD 2.6 billion out of whole acquisition worth of USD 6.6 billion for Ambuja and ACC.
“The entire prepayment program of USD 2.65 billion has been completed within 6 weeks, which testifies the strong liquidity management and access to capital at sponsor level, supplementing the solid capital prudency adopted at all portfolio companies,” the assertion stated.
The final announcement of prepayment of share-backed financing of Rs 7,374 crore on March 7 was adopted by extra shares belonging to corporations of the group being pledged as safety for loans taken by the group’s flagship agency.
On March 8, SBICap Trustee in notices to inventory exchanges had said {that a} additional 0.99 per cent shares in Adani Green Energy Ltd have been pledged “for the benefits of the lenders” of Adani Enterprises Ltd. An further 0.76 per cent shares in Adani Transmission Ltd have been additionally pledged to banks, the trustee stated.
With the newest pledge, the overall shares in Adani Green Energy Ltd – the group’s renewable power firm – that have been encumbered with SBICap was 2 per cent. In the case of Adani Transmission, this got here to 1.32 per cent. The March 7 assertion said that the compensation of Rs 7,374 crore will launch pledge on shares of promoters in 4 group corporations, and along with repayments executed earlier, the group has pay as you go USD 2.016 billion of share-backed financing.
Founder chairman Gautam Adani and his brother Rajesh on behalf of SB Adani Family Trust on March 2 introduced sale of shares in flagship incubating agency Adani Enterprises Ltd (AEL), port firm Adani Ports and Special Economic Zone Ltd (APSEZ), electrical energy transmitting agency Adani Transmission Ltd (AEL) and renewable power agency Adani Green Energy Ltd (AGEL).
That sale helped the group flip the narrative constructing since US quick vendor Hindenburg Research launched a damning report on January 24.
The 10 listed Adani Group corporations, which collectively had misplaced about USD 135 billion in market worth following the report, have seen inventory costs rise in successive buying and selling classes ever since.
In September final 12 months, CreditSights, a Fitch Group unit, stated the group was “deeply overleveraged” because it used debt to broaden an empire centred on ports and coal mining to incorporate airports, knowledge centres and cement in addition to inexperienced power.
In the January 24 report, US quick vendor 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”.
It is now hoping to claw again the narrative by selecting gradual and regular development over the breakneck, principally debt-fuelled, growth spree of current years.
It has already scrapped a Rs 7,000-crore coal plant buy, determined to not bid for a stake in state-backed power buying and selling agency PTC, reined in bills, repaid some debt and promised to repay extra.
Adani Group’s gross debt has doubled within the final 4 years. It has nearly USD 2 billion value of foreign-currency bonds arising for compensation in 2024.
The group’s gross debt has grown from Rs 1.11 lakh crore in 2019 to Rs 2.21 lakh crore in 2023, in response to a presentation made to traders final month.
After together with money, the web debt was Rs 1.89 lakh crore in 2023.
