Adani Group Releases ₹26,500 Crore Pledged Shares

19 Apr 2024 , 01:42 PM

For the fourth year in a row, the Adani Group released around ₹26,500 Crore of pledged shares across its five listed firms in the fiscal year 2024. Following comparable disbursements of more than ₹15,000 Crore each in FY23 and FY22 and ₹1.27 Lakh Crore in FY21, analysts credit this trend to increased cash earnings.

Improved cash flows have allowed the group to release pledged shares, according to independent market analyst Ambareesh Baliga, and institutions increasing their holding in some of the companies is also a good development.

The highest release of shares pledged by promoters occurred in FY24 at Adani Power, with Adani Ports & SEZ and Adani Green Energy Ltd. following. The 72.72 Crore promoter shares that Adani Power had pledged in March 2023 have now dropped to 44.56 Crore, indicating the release of almost 28.16 Crore shares, valued at ₹15,000 Crore.

Similar to this, Adani Ports & SEZ had 6.14 Crore shares committed by promoters in March 2023; by March 2024, that number had dropped to 2.42 Crore, releasing about 3.72 Crore shares worth ₹4,989 Crore. Adani Green Energy released 2.26 Crore shares valued at ₹4,149 Crore after the number of promoters who pledged shares fell from 3.17 Crore to 90.86 Lakh.

Furthermore, promoter-pledged shares worth about ₹913 Crore and ₹1,402 Crore were released for other group firms, namely Adani Energy Solutions and Adani Enterprises. Adani Energy Solutions committed 3 Crore shares in March 2023; by March 2024, that number had dropped to 2.11 Crore, and Adani Enterprises pledged 50.63 Lakh shares, which by March 2024 had dropped to 6.71 Lakh shares, resulting in the releases of 8.9 Crore and 43.93 Crore shares.

Adani Group reported in February that by December 2023, the EBITDA of its portfolio firms had increased by 34% to ₹79,000 Crore, which is 2.5 times more than it was in 2021. An enduring infrastructural platform propelled the growth, which yielded ₹66,208 Crore, or 84% of the portfolio’s EBITDA.

According to the company, there is still robust market access, as seen by the ₹91,290 Crore in investments made by different portfolio firms from both local and foreign institutions. Forty-five% of the company’s overall EBITDA comes from emerging infrastructure industries under Adani Enterprises Ltd., such as green hydrogen, airports, and roads.

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