Adani Group Promoters To Prepay $1.11 Billion To Release Pledged Shares

Adani Group said that this has been done "in light of recent market volatility and in continuation of the promoters’ commitment to reduce the overall promoter leverage backed by Adani listed company shares"

Adani Group.

Adani Group on Monday said that 168.27 million shares of Adani Ports & Special Economic Zone Ltd, 27.56 million shares of Adani Green Energy Limited, and 11.77 million shares of Adani Transmission Limited to be released in due course. The company in a news release said this on Monday. The promoters of the group companies have repaid $1.114 billion before time to release some pledged shares in the companies, it said.

"In light of the recent market volatility and in continuation of promoters commitment to reduce the overall promoter leverage backed by Adani listed companies shares, we are pleased to inform that promoters have posted the amounts to pre-pay $1,114 million ahead of its maturity of September 2024", the statement said.

The conglomerate said that this has been done "in light of recent market volatility and in continuation of the promoters’ commitment to reduce the overall promoter leverage backed by Adani listed company shares".

News agency ANI has tweeted the release.

168.27 million shares of Adani Ports & Special Economic Zone Ltd, 27.56 million shares of Adani Green Energy Limited and 11.77 million shares of Adani Transmission Limited to be released in due course: Statement on pledge of shares of Adani Listed Companies pic.twitter.com/pDf8VpuTdS

— ANI (@ANI) February 6, 2023

As of end of December 2022, Adani Ports had 17.31 per cent stake pledged. After this news release, it will come down to 5.31 per cent. While pledged stake in Adani Green Energy will also come down to 1.36 per cent from 4.36 per cent, and for Adani Transmission it will reduce to 5.22 per cent from 6.62 per cent as of December end.

After the Hindenburg report came out in public, there was selling pressure in most Adani Group stocks, including ACC and Ambuja Cements, was due to margin funding pressure. However, Adani Group clarified that none of the shares of Ambuja or ACC have been pledged by promoters. "The promoters have only provided non-disposal undertaking for these companies," they mentioned.

Meanwhile, according to news reports, Adani Group also plans to slash its capital spending plans, days after the conglomerate's flagship firm called off a $2.5 billion share sale.