NEW DELHI: Promoters of Adani Group have prepaid loans worth $1.1 billion taken against shares as collateral before the end of its maturity in September 2024. Adani Group is promoted by billionaire Gautam Adani and his family members.
"In light of recent market volatility and in continuation of the promoters' commitment to reduce the overall promoter leverage backed by Adani Listed Company shares, we are pleased to inform that promoters have posted the amounts to prepay USD1,114 million ahead of its maturity of Sep 2024," Adani Group said in a statement.
With the repayment of such amount, the following Adani Listed Company shares shall be released in due course –
• Adani Ports & Special Economic Zone Ltd: 168.27 million shares, representing 12% of the promoters’ holding
• Adani Green Energy Limited: 27.56 million shares, representing 3% of promoters’ holding
• Adani Transmission Limited: 11.77 million shares, representing 1.4% of promoters’ holding.
The promoter family, as of December 31, owns 65.13% equity in APSEZ of which 17.31% is pledged, according to the BSE data. The promoter's stake in Adani Green stood at 60.75% (pledge: 4.36%) and 74.19% in Adani Transmission (pledge: 6.62%).
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"This is in continuation of promoters' assurance to prepay all share backed financing," said the Group. It has also denied media reports that said the conglomerate was planning to cut back its capital spending.
This action by Adani comes as the Group faces one of its biggest crises in recent times. After the US-based short seller Hindenburg Research published its report where it accused the port-to-power conglomerate of stock manipulation among other things, Adani Group's 10 listed companies have lost about Rs 10 lakh crore in valuation with its stocks crashing up to 60% in 8 sessions.
Post the release of the report, many global financial agencies, one by one, are cutting their dealing with the group.
After Credit Suisse and Citigroup, British lender Standard Chartered has now stopped accepting Adani Group bonds as collateral on margin loans.
Meanwhile, the Reserve Bank of India (RBI) has asked banks and Life Insurance Corporation to declare their exposures to the Adani group while India’s capital market regulator Sebi said that it is committed to ensuring the stock market's integrity and all necessary surveillance measures are in place to address any excessive volatility in individual shares.