Adani Group To Prepay US$1.11bn Loan To Release Pledged Shares in 3 Companies
Moneylife Digital Team 06 February 2023
Adani group companies have decided to prepay US$1.114bn (billion) as part of its commitment to reduce the overall promoter leverage backed by Adani-listed company shares ahead of its maturity of September 2024.
 
In a statement, Adani group says, "In light of recent market volatility and in continuation of the promoter's commitment to reduce overall promoter leverate backed by Adani listed company shares, we are pleased to inform that promoters have posted the amounts to prepay US$1,114mn (million) ahead of its maturity of September 2024."
 
With the repayment, 168.27mn shares of Adani Ports & Special Economic Zone Ltd, 27.56mn shares of Adani Green Energy Ltd and 11.77mn shares of Adani Transmission Ltd would be released in due course, it added. 
 
Promoter and promoter group hold 65.13% stake in Adani Ports & Special Economic Zone, out of which 243.58mn or 17.31% are pledged. Adani Green Energy has a promoter and promoter group stake of 60.75%, while shares pledged are 41.96mn or 4.36% of its total shares. Data from BSE shows, the promoter's shareholding in Adani Transmission at 74.19%, out of which 54.82mn or 6.62% stake is pledged by the promoters. 
 
Last week, Bloomberg reported that Adani group chairman Gautam Adani is in talks with lenders to prepay and release pledged shares as he seeks to restore confidence in the financial health of his conglomerate. Citing a person with knowledge of the matter, the report says, Adani group has not faced margin calls on these pledges and is seeking the prepayment proactively.
 
Comments
marvellousresearch
1 year ago
SORCE OF MONEY ?
fnetwork
1 year ago
Adani Group – The Fire continues to burn screams an article…

To be sure there are many across the globe. If the MAN was not famous when he was touted by Forbes as number 3 and climbing, he certainly has garnered worldwide attention. Every punter and every retail investor is now familiar with the name “ADANI”.

We have followed Adani for over 8 years now, inviting him many times to establish a footprint in the USA partnering with Berkshire Hathaway owned MidAmerica in the Green Energy space through Adani Green Energies where he would supply the technology and the manufacturing and BH buys to establish the energy parks across the USA. He demurred wanting to build in India first and then gradually spread Westwards to the Middle East …

I believe his Business Logic and Strategy is impeccable. His focus on profitability, cash flow, growth unshakeable.

HOWEVER his weakness is that he followed the advice of “sharks” to goose the shares to heights rarely seen before with p/e of some 500+ to quickly enhance the leverage to borrow, and grow quickly.

Then along came Hindenburg and lit a match.

Once bit, twice shy. The “Sharks” the first ones to exit leaving retail holding the bag and his institutional entourage shell-shocked.

AS A DISTRESS bond expert with over 40 years experience, my warning is the DEBT markets. If not carefully managed, Adani may not get access to the foreign bond markets … just like Anil Ambani, Pramod Mittal, and the Ruias. Bonds trading at 60 + is a big NO-NO – a warning sign that holders are dumping and..

ONCE BIT TWICE SHY.

One such article:

In two weeks. Adani Group has lost more than $118 billion in market value, more than half its market capitalization. The fire continues to decimate the market value of the conglomerate built by the Indian tycoon Gautam Adani.
The conglomerate, which holds mines, ports, power plants and data centers, is one of the jewels of India. Its rise coincided with the country's ambitions to become an economic powerhouse rivaling China.
But investors do not seem convinced by the explanations provided so far. The Mumbai Stock Exchange rout of the entities making up the Adani empire continues.
Adani Enterprises, the conglomerate's flagship, lost 0.4% on Feb.6. Adani Transmission fell 10%, while Adani Green Energy lost 5%. Adani Power and Adani Total Gas each declined 5%. Adani Port and Special Economic Zone bucked the trend and ended 9.46% higher.

NOTE: There are those that criticize Nathan Anderson/Hindenburg. I am not one of them. we need these "necessary evils" in the marketplace to keep the "dealings straight". He proved it with Nikola and now Adani, his greatest challenge.
rashokan
1 year ago
How US$ 1.1 billion was raised?
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