Adani Group Prepays Rs 7,374 Crore Of Share Backed Financing

Adani Group said that the move is part of its promoters' commitment to cut overall leverage backed by shares of the group's listed companies

Adani Group on Tuesday said that it has prepaid share-backed financing of Rs 7,374 crore ($902 million) ahead of its latest maturity in April 2025. The company said that the move is part of its promoters' commitment to cut overall leverage backed by shares of the Group's listed companies.

The company statement said, "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 March 32 2023."

Promoters of the group's flagship firm, Adani Enterprises will release 31 million shares, or a 4 per cent stake, while Adani Ports' promoters will release 155 million shares, or an 11.8 per cent stake, the group said in a statement.

Promoters of Adani Green Energy and Adani Transmission will release 1.2 per cent and 4.5 per cent stakes, respectively.

The billionaire Gautam Adani-led Adani Group has been looking to ease concerns about its credit profile after a US-based short seller noted high debt and alleged improper use of offshore tax havens and stock manipulation. The group has denied all allegations, calling them "malicious", "baseless" and a "calculated attack on India".

According to a PTI report, Adani Group has almost $2 billion worth of foreign-currency bonds coming up for repayment in 2024. 

The conglomerate borrowed over $10 billion in foreign currency bonds between July 2015 and 2022 across group companies. Of this, $1.15 billion of bonds matured in 2020 and 2022.

According to the report Adani group management, including Group Chief Financial Officer Jugeshinder Singh, last month held roadshows in Singapore and Hong Kong to reassure investors that the company's finances are under control. These are to be extended to Dubai, London, and the US from March 7 to 15. Executives told investors they will address upcoming debt maturities including by potentially offering private placement notes and using cash from operations.