Adani Debt Business

Adani debt of $2.15 billion in share-backed loans fully paid-off

In response to Hindenburg research, Adani Group called the Hinderberg report’s claim of Adani’s failure to repay $2.15 billion in share-backed debt “baseless and deliberately mischievous.” The Adani Group announced that it has achieved a total payback of the Adani debt of $2.15 billion in margin-linked share-backed financing and that all matching shares pledged for those facilities have been released.

To regain investor confidence days before India’s markets regulator is scheduled to present findings from an investigation into the Group’s alleged wrongdoings, the Adani Group claimed cash and profit generated from its expansive infrastructure business covers all the debt maturing each year in the coming decade.

The Adani Group called Ken’s report “baseless and deliberately mischievous”

The Adani Group announced that it has fully prepaid the $2.15 billion in margin-linked share-backed borrowing and that all matching shares pledged for those facilities have been released. Adani Transmission Ltd.’s share commitments decreased from 17.3% as of December 31, 2022, to 4.7% as of March 27, according to a statement with the stock market by the Group’s parent company, Adani Enterprises Ltd.

As of March 27, pledge shares for Adani Green Energy Ltd. had increased to 3.5% from 4.4%, Adani Transmission had decreased to 3.8% from 6.6%, and Adani Enterprises Ltd. had been reduced to 0.6% from 2.7% from the end of 2022. According to the announcement, ListCo’s pledge positions for Adani Green, Adani Ports, Adani Transmission, and Adani Enterprises have significantly decreased due to this reimbursement, leaving only leftover share commitments for Operating Company facilities unpaid.

The announcement followed a Ken report on the Adani debt, which claimed that exchange files show that a sizable chunk of the promoters’ shares held as security by banks had yet to be released, implying that the repayments needed to be increased. It was described as baseless by the Adani Group.

No new operating company facilities have been availed by the Group after the “Hindenberg report Adani”

According to the firm, no more operating company facilities have been used since the Hindenburg report and are now included in the debt structure of the corresponding company. In contrast to share-backed borrowing, these facilities don’t contain covenants like cash margin calls or share price-linked put options. Listed shares have also been offered as supplementary collateral for these operating business obligations “for additional lender comfort”.

In addition, the company delivered screenshots of the National Stock Exchange showing lenders releasing pledged shares of Adani Enterprises, Adani Green Energy, and Adani Transmission. A further prepayment of $134 million was made after the public release of an announcement of prepayments of $1,114 million in February and $902 million in March. This resulted in an updated debt of $2.15 billion for the most recent statement on March 12.

After the Hindenburg report, Adani’s research suggested governance problems and stock manipulation, and Adani Group has begun repaying debt. The Group has denied the allegations made on the Hindenburg report Adani relating to the Adani debt case.

Within six weeks, the entire $2.65 billion prepayment programme relating to the Adani debt was finished

According to the Adani Group, the entire $2.65 billion prepayment programme for the Adani debt was completed in six weeks. It attests to the excellent capital prudence practised at all portfolio companies and the sponsor level’s robust liquidity management and access to capital. The Group returned loans totalling Rs 7,374 crore that it had taken out with company shares as collateral around March 2023, well before their April 2025 maturity date.

Promoters received 155 million shares of Adani Ports, 31 million shares of Adani Transmission, and 11 million shares of Adani Green in exchange for this prepayment. The promoters made the prepayment after selling GQG Partners stakes in 4 Adani Group firms for Rs 15,000 crore.

Conclusion

The Adani debt repayment of $2.15 billion in share-backed debt is a positive step for the group. It shows that the group is committed to reducing debt and improving its financial health. Shares of four listed Adani firms would be released due to these payments to various foreign banks and Indian financial institutions, according to a statement from the Gautam Adani-led company. Payments are another step to ease worries among lenders and investors.

Adani Ports and Special Economic Zone Ltd. (155 million shares or 11.8%), Adani Enterprises Ltd. (31 million shares or 4%), Adani Transmission Ltd. (36 million shares or 4.5%), and Adani Green Energy Ltd. (11 million shares or 1.2%), are the four Adani companies with the number of shares and promoter shareholding disclosed.

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