Adani Group repays loans worth $2.65 Billion

New Delhi, Jun 06: The Adani Group has said that it has repaid loans aggregating $2.65 billion to complete a prepayment program to cut the overall leverage in an attempt to win back investor trust after US short-seller Hindenburg leveled allegations of stock price manipulation against the port-to-energy conglomerate.

 

 

 

In a statement, the Adani group said it has repaid $2.15 billion of loans that were taken by pledging shares in the conglomerate's listed firms and also another $500 million in loans taken for the acquisition of Ambuja Cement. In a Credit Note released on June 5, Adani Group said it has made a full prepayment of $2.15 billion of loans that were taken by pledging shares in the conglomerate's listed firms and also another $700 million in loans taken for the acquisition of Ambuja Cement.

 

 

 

"The prepayment was done along with interest payment of $203 million," it added. Further, the credit update states that the promoters completed the sale of shares in four listed group entities to GQG Partners, a leading global investment firm, for $1.87 billion ( Rs15,446 crore). "The deleveraging program testifies to the strong liquidity management and capital access at sponsor level even in volatile market conditions, supplementing the solid capital prudence adopted at all portfolio companies," Adani Group said in the credit update. The 10 listed Adani Group companies, which together had lost about $135 billion in market value following the report, have seen stock prices rise in successive trading sessions ever since. In a report released on January 24, US short-seller Hindenburg Research flagged "substantial" debt levels at the group while alleging accounting fraud and the use of offshore shell companies to inflate stock prices. However, the allegations triggered a stock market rout that erased about $145 billion in the conglomerate's market value at its lowest point. The group has denied all allegations, calling them "malicious", "baseless" and a "calculated attack on India". It is now hoping to claw back the narrative by choosing slow and steady growth over the mostly debt-fuelled, expansion spree of recent years. The group has recast its ambitions as well as prepaid some loans to assuage investors.

 

Also Read: Gautam Adani back in top 20 billionaires list as net worth jumps to $64.2 billion 

 

The credit update further highlights major improvements in key financial metrics - the portfolio's combined Net Debt to EBITDA ratio has decreased from 3.81 in FY22 to 3.27 in FY23, run rate EBITDA surged from ₹50,706 crores in FY22 to ₹66,566 crores in FY23. The update further states that the banking lines of Adani Group continue to show confidence by disbursing new debt and rolling over existing lines of credit.