Adani Group prepays Rs 7,374 crore worth of loans

8 Mar 2023 , 09:49 AM

Adani Group promoters have prepaid loans backed by shares worth $902 million, or Rs 7,374 crore, to foreign banks and Indian lenders ahead of their maturity date in April 2025, according to a press release issued on Tuesday.

In order to calm down investors who are worried about a large amount of borrowing done by the promoters of the industrial house using shares of their group companies as collateral, the company has decided to take certain measures. This move comes after the Hindenburg Research report caused a sell-off in the market.

According to the statement released, this action is in line with the company’s commitment to decrease the overall leverage of the promoters that is supported by shares. 

The statement also highlighted that the Gautam Adani and family have already paid off $2 billion of share-backed financing since February, which is in keeping with their promise to repay all share-backed financing by March 31.

In February, the Adani family had already paid back loans totaling Rs9,250 crore ($1.1 billion) that were supported by shares.

With the recent repayment of loans, a total of 155 million shares of Adani Ports and Special Economic Zone (which represents 11.8% of the promoters’ holding), 31 million shares of Adani Enterprises (equivalent to 4.0%), 36 million shares of Adani Transmission (which accounts for 4.5%), and 11 million Adani Green Energy shares (equal to 1.2%) are no longer being held as pledges.

It is anticipated that the repayment of the loan will have a positive impact on the outlook for Adani Group stocks, thus enhancing market sentiment.

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