New Delhi: Confused Adani The group said on Sunday it had repaid $2.65 billion in debt to meet a prepayment program ahead of a March 31 deadline, in an effort to win back investor confidence as it rolled back a damning report from a US short seller. Can go
In a statement, the Adani Group said it has repaid a $2.15 billion loan that was taken by pledging shares in the group’s listed firms and has also repaid another $500 million loan taken for the acquisition. Ambuja Cement,
The announcement comes within days of the group saying it has made prepayments of Rs 7,374 crore (about $902 billion), which were taken by pledging shares in four group companies. It has now been increased to $2.15 billion.
While the Adani group did not give details of the source of money to repay the loan, it comes within days of promoters selling minority stake in four listed companies to US-based GQG Partners for Rs 15,446 crore.
“In continuation of the promoters’ commitment to repay promoters’ leverage, Adani has completed the full prepayment of the margin linked equity-backed financing of $2.15 billion, ahead of the committed deadline of March 31, 2023,” it said . “In addition to the above, the promoters have also taken prepaid for the facility of $500 million ambuja acquisition financing.”
It said, this was in line with the promoters’ commitment to increase equity contribution and the promoters have infused $2.6 billion for Ambuja and ACC out of the total acquisition price of $6.6 billion.
“The entire prepayment program of $2.65 billion has been completed within 6 weeks, attesting to the strong liquidity management and access to capital at the sponsor level, the sound capital prudence adopted across all portfolio companies,” the statement said. is the complement of.”
More shares belonging to group companies were pledged as security for loans taken by the group’s flagship firm after the final announcement of prepayment of share-backed financing of Rs 7,374 crore on March 7.
SBICap on March 8 trustee The notice to the stock exchanges said that 0.99 per cent shares of Adani Green Energy Ltd were pledged to Adani Enterprises Ltd “for the benefit of the lenders”. in additional 0.76 percent shares Adani Transmission Ltd was also pledged with banks, the trustee said.
With the latest pledge, the total shares in Adani Green Energy Ltd – the group’s renewable energy company – that were encumbered with SBI Cap stood at 2 per cent. In the case of Adani Transmission, it came down to 1.32 per cent.
The March 7 statement said the repayment of Rs 7,374 crore will issue pledges on promoters’ shares in four group companies, and with the repayments made earlier, the group has committed $2.016 billion of share-backed financing.
Founder Chairman Gautam Adani and his brother Rajesh on behalf of SB Adani Parivar Trust Sale of shares in leading incubating firm Adani Enterprises Limited (AEL), port company Adani Ports and Special Economic Zone Limited (APSEZ), power transmitting firm Adani Transmission Limited (AEL) and renewable energy firm Adani Green Energy Limited (AGEL) on March 2 announced. ,
That sale helped the group build narrative as US short seller Hindenburg Research issued a damning report on 24 January.
The 10 listed companies of the Adani group, which together lost nearly $135 billion in market value after the report, have seen share prices rise in consecutive trading sessions since then.
In September last year, CreditSights, a unit of the Fitch Group, said the group was “over depth” as it expanded an empire focused on ports and coal mining to include airports, data centers and cement as well as green energy. The loan was used for expansion.
In a January 24 report, US short seller Hindenburg Research flagged “substantial” debt levels at the group, alleging accounting fraud and inflating the offshore shale companies’ stock prices.
The group has denied all of Hindenburg’s allegations, calling them “malicious”, “baseless” and a “planned attack on India”.
It is now hoping to take back the narrative by choosing slow and steady growth over the breakneck, mostly debt-fuelled, expansion spree of recent years.
It has already canceled a Rs 7,000-crore coal plant purchase, decided not to bid for a stake in state-backed energy trading firm PTC, reined in expenses, repaid some debt and promised to repay more Have done
Adani Group’s gross debt has doubled in the last four years. It has about $2 billion worth of foreign currency bonds coming due for repayment in 2024.
The group’s gross debt is set to grow from Rs 1.11 lakh crore in 2019 to Rs 2.21 lakh crore in 2023, according to a presentation made to investors last month.
After adding cash, the net debt in 2023 was Rs 1.89 lakh crore.
In a statement, the Adani Group said it has repaid a $2.15 billion loan that was taken by pledging shares in the group’s listed firms and has also repaid another $500 million loan taken for the acquisition. Ambuja Cement,
The announcement comes within days of the group saying it has made prepayments of Rs 7,374 crore (about $902 billion), which were taken by pledging shares in four group companies. It has now been increased to $2.15 billion.
While the Adani group did not give details of the source of money to repay the loan, it comes within days of promoters selling minority stake in four listed companies to US-based GQG Partners for Rs 15,446 crore.
“In continuation of the promoters’ commitment to repay promoters’ leverage, Adani has completed the full prepayment of the margin linked equity-backed financing of $2.15 billion, ahead of the committed deadline of March 31, 2023,” it said . “In addition to the above, the promoters have also taken prepaid for the facility of $500 million ambuja acquisition financing.”
It said, this was in line with the promoters’ commitment to increase equity contribution and the promoters have infused $2.6 billion for Ambuja and ACC out of the total acquisition price of $6.6 billion.
“The entire prepayment program of $2.65 billion has been completed within 6 weeks, attesting to the strong liquidity management and access to capital at the sponsor level, the sound capital prudence adopted across all portfolio companies,” the statement said. is the complement of.”
More shares belonging to group companies were pledged as security for loans taken by the group’s flagship firm after the final announcement of prepayment of share-backed financing of Rs 7,374 crore on March 7.
SBICap on March 8 trustee The notice to the stock exchanges said that 0.99 per cent shares of Adani Green Energy Ltd were pledged to Adani Enterprises Ltd “for the benefit of the lenders”. in additional 0.76 percent shares Adani Transmission Ltd was also pledged with banks, the trustee said.
With the latest pledge, the total shares in Adani Green Energy Ltd – the group’s renewable energy company – that were encumbered with SBI Cap stood at 2 per cent. In the case of Adani Transmission, it came down to 1.32 per cent.
The March 7 statement said the repayment of Rs 7,374 crore will issue pledges on promoters’ shares in four group companies, and with the repayments made earlier, the group has committed $2.016 billion of share-backed financing.
Founder Chairman Gautam Adani and his brother Rajesh on behalf of SB Adani Parivar Trust Sale of shares in leading incubating firm Adani Enterprises Limited (AEL), port company Adani Ports and Special Economic Zone Limited (APSEZ), power transmitting firm Adani Transmission Limited (AEL) and renewable energy firm Adani Green Energy Limited (AGEL) on March 2 announced. ,
That sale helped the group build narrative as US short seller Hindenburg Research issued a damning report on 24 January.
The 10 listed companies of the Adani group, which together lost nearly $135 billion in market value after the report, have seen share prices rise in consecutive trading sessions since then.
In September last year, CreditSights, a unit of the Fitch Group, said the group was “over depth” as it expanded an empire focused on ports and coal mining to include airports, data centers and cement as well as green energy. The loan was used for expansion.
In a January 24 report, US short seller Hindenburg Research flagged “substantial” debt levels at the group, alleging accounting fraud and inflating the offshore shale companies’ stock prices.
The group has denied all of Hindenburg’s allegations, calling them “malicious”, “baseless” and a “planned attack on India”.
It is now hoping to take back the narrative by choosing slow and steady growth over the breakneck, mostly debt-fuelled, expansion spree of recent years.
It has already canceled a Rs 7,000-crore coal plant purchase, decided not to bid for a stake in state-backed energy trading firm PTC, reined in expenses, repaid some debt and promised to repay more Have done
Adani Group’s gross debt has doubled in the last four years. It has about $2 billion worth of foreign currency bonds coming due for repayment in 2024.
The group’s gross debt is set to grow from Rs 1.11 lakh crore in 2019 to Rs 2.21 lakh crore in 2023, according to a presentation made to investors last month.
After adding cash, the net debt in 2023 was Rs 1.89 lakh crore.
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