Adani Group says it has prepaid share-backed loans worth Rs 7,374 crore
The conglomerate said that the move was part of its commitment to reduce the overall promoter leverage of the stocks of its companies.
The Adani Group on Tuesday said that it has prepaid share-backed loans worth Rs 7,374 crore ahead of their maturity date in April 2025.
The conglomerate said that the move was part of its commitment to reduce the overall promoter leverage of the shares of its companies.
The move is also aimed to reduce concerns of investors regarding the total borrowings of the Adani Group with shares of group companies as collateral in the wake of allegations raised against it in the Hindenburg Research report.
The ports-to-energy conglomerate has been steeped in a crisis since January 24, when United States-based investment firm Hindenburg Research alleged that the group has amassed substantial debt by pledging overvalued shares.
Since the report was released, the listed firms of the Adani Group have together lost about $145 billion in market value. While the conglomerate has rejected these allegations, its responses have failed to halt the stock market bloodbath.
Opposition leaders have repeatedly accused Prime Minister Narendra Modi of favouring Gautam Adani, the chairperson of the conglomerate.
On March 2, the Supreme Court formed set up an expert panel to examine investor protection mechanisms in the wake of the crisis in the Adani Group. The court has also asked the market regulator Securities and Exchange Board of India to investigate the allegations pertaining to the Adani Group and submit its report within two months.
On Tuesday, the Adani Group said that the repayment will help release shares of four listed companies of the conglomerate.
This includes 310 lakh shares of Adani Enterprises, 1550 lakh shares of Adani Ports and Special Economic Zone, 360 lakh shares of Adani Transmission and 110 lakh shares of Adani Green Energy.
In February, the conglomerate had announced a prepayment of $1.114 billion (around Rs 9,215 crore) on loans taken from banks and financial institutions against pledged shares in Adani Ports, Adani Green Energy and Adani Transmission.