Adani Group promoters today announced that they have prepaid share-backed financing to the tune of US$902mln (£759mln) more than two years ahead of maturity as the crisis-stricken Indian conglomerate seeks to deleverage its debt levels.
In order to prepay debts taken out from domestic and internations lenders, the following shares will be released from Gautam Adani’s ports-power group of subsidiaries:
- Adani Ports and Special Economic Zone: 155 million shares, representing 11.8% of the promoters’ holding
- Adani Enterprises: 31 million shares, representing 4.0% of promoters’ holding
- Adani Transmission: 36 million shares, representing 4.5% of promoters’ holding
- Adani Green Energy: 11 million shares, representing 1.2% of promoters’ holding
Per Indian corporate structure, promoters refer to company founders with a controlling interest in the company. Promoters’ names were not disclosed, but were likely members of the S. B. Adani Family Trust.
“Along with the repayments done earlier in the month of February, Adani has prepaid US$2bn of share-backed financing, which is consistent with promoters’ commitment to prepay all share-backed financing before 31 March 2023,” the company stated.
Adani Group has been scrambling to recover from the stunning US$145bn in market losses seen in the past month in the wake of Hindenburg Research’s brutal investigation into the group.
Hindenburg, an infamous New York activist investment firm and short seller, published a lengthy research piece into Adani’s Indian business empire in January, detailing allegations of fraud, stock manipulation and money laundering
Adnani last week notified creditors that it had secured a multibillion-dollar leg-up from US investment firm GQG Partners
Rumours of a US$3bn credit line from an unnamed sovereign wealth fund reported by Reuters last week have not been corroborated.