NEW DELHI: Embattled Adani Group on Tuesday said it has prepaid Rs 7,374 crore ($902 million) share-backed financing made by various international and domestic financial institutions, about two years ahead of its latest maturity date.
“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 Rs 7,374 crore ($902 million) ahead of its latest maturity in April 2025,” said Adani Group in a statement.
The conglomerate has pledged to prepay all share-backed remaining loans by the end of March 2023. “Along with the repayments done earlier in February, Adani has prepaid $2,016 million of share-backed financing, which is consistent with promoters’ commitment to prepay all share-backed financing before March 31, 2023,” noted the statement.
This is the third time in quick succession the Group has restored to prepay its loan to generate confidence among investors and lenders about its ability to meet debt obligations. The billionaire Gautam Adani promoted group, whose net debt stood at Rs 1.96 lakh crore as of December 2022, is easing concerns related to its credit profile after CreditSight had called it ‘overleveraged’ and US-based short seller Hindenburg Research alleged stock price manipulation by the promoters via offshore tax havens.
With the repayment of Rs 7,374 crore to financial institutions, the following Adani listed company shares will be released – Adani Ports & Special Economic Zone Ltd: 155 million shares, representing 11.8% of the promoters’ holding. Adani Enterprises: 31 million shares, representing 4.0% of promoters’ holding. Adani Transmission: 36 million shares, representing 4.5% of promoters’ holding. Adani Green Energy: 11 million shares, representing 1.2% of promoters’ holding.
The Group’s fresh repayment comes at a time when the conglomerate is having more roadshows in London, Dubai and several cities in the US to boost investor confidence days after it raised Rs 15,446 crore from US-based GQG Partners.