Gautam Adani-led Adani group today said it has prepaid share-backed financing of ₹7,374 crore ($902 million) as part of its promoters’ efforts to reduce the overall promoter leverage backed by Adani listed company shares.
The share-backed financing has been prepaid ahead of its latest maturity in April 2025. With the repayment of ₹7,374 crore to various international banks and Indian financial institutions, a total of around 193 million shares of four Adani-listed company shares will be released. This includes around 155 million shares of Adani Ports & Special Economic Zone Ltd, representing 11.8% of the promoters’ holding; 31 million shares of Adani group flagship company Adani Enterprises Limited, representing 4% of promoters’ holdings. Besides, Adani Transmission Limited's 36 million shares, representing 4.5% of promoters’ holding will be released with the payment. Also, Adani Green Energy Ltd's 11 million shares, representing 1.2% of promoters’ holdings will be released.
"Along with the repayments done earlier in the month of February, Adani has prepaid $2,016 million of share-backed financing, which is consistent with promoters’ commitment to prepay all share-backed financing before 31 March 2023," the company said in a statement.
In another development concerning the ports-to-airport conglomerate, the domestic bourses National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) have also removed Adani Enterprises from the Short-Term Additional Surveillance Measure (ST-ASM) Stage I framework, with effect from March 8, 2023. The exchanges had put the conglomerate’s stock under its ASM framework last month.
On February 3, both the BSE and NSE put Adani Enterprises, Adani Ports and Special Economic Zone, and Ambuja Cements in the surveillance framework to restrict excessive volatility in the stocks. While Ambuja Cements and Adani Ports were removed from the framework on February 13, Adani Enterprises remained under surveillance.
The removal of the ASM framework will ease some trading restrictions, such as higher margin requirements while dealing in shares of AEL. Besides, the Adani group On March 3, 2023, also raised ₹15,446 crore by selling minority stakes in four of its listed firms to U.S.-based GQG Partners.
These moves come more than a month after a report by the U.S.-based short-seller Hindenburg Research triggered a sharp sell-off in Adani group stocks. Overall, the stocks lost nearly ₹12 lakh crore in market value in more than a month after the report was released on January 24, 2023.
The Adani group is also reportedly planning roadshows globally, including in Dubai, London and the US to assure investors that its finances are well within its control.
Meanwhile, the shares of the four listed companies of the Adani group clsoed in positive territory on Monday. The Adani Green Energy stock closed 0.49% or 3.35 points up at ₹688; the stock gained 24.02% in the past five days and 24.38% in the past month.
The Adani Enterprises Ltd stock rose 5.45% up at ₹1,982; the stock rose 77.98% in the past week and 9.93% in the past month. Similarly, the Adani Transmission Ltd stock closed 5% up at ₹781.35, growing 21.54% in the past week but falling 37.60% in the past month. The shares of Adani Green Energy were also up 4.99% at ₹589.8, rising 34.32% in the past week but falling 30.17% in the past month.
