A couple of days after Gautam Adani and his family made ?9,250 crore ($1.1 billion) prepayment of debt backed by shares early to soothe the investors' nerves, the Adani Group is taking another step to boost its finances and regain investor confidence amid allegations put forth against it by Hindenburg research.
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Adani Group plans to prepay a $500 million loan due next month to a group of banks as the Indian conglomerate looks to bolster its finances following a short seller attack.?For the uninitiated,?prepayment is when you make an?early repayment of a loan before its due date, either in part or in full.
Barclays, Standard Chartered and Deutsche Bank are among the banks that lent Adani $4.5 billion to finance the purchase of Holcim Ltd. cement assets last year. A portion of that loan is due March 9, 2023, as per Bloomberg.
An Adani spokesperson said the conglomerate had been in talks with banks to refinance that part of the loan but has decided to prepay it. The spokesperson said discussions with the banks have not stalled.
The corporate empire of Gautam Adani, once the world¡¯s second-richest person, has been rattled after the Hindenburg Research report on alleged malpractices.?Hindenburg Research alleged that a web of Adani family-controlled offshore shell entities in tax havens were used to?facilitate corruption, money laundering and taxpayer theft.?
10 Adani group companies had?at one point erased $117 billion from their combined market values in the selloff, forcing the tycoon to top up his share pledges for loans, as per Bloomberg.
Gautam Adani too lost his title of being the world's richest Asian and Indian last week to Reliance's Mukesh Ambani.?
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A couple of days ago, Gautam Adani and his family repaid ?9,250 crore ($1.1 billion) of debt backed by shares.
"This is in continuation of promoters' assurance to prepay all share-backed financing," the Adani Group had said, as per ET.
These loans against shares (LAS) were taken by promoter entities and backed by share pledges. Most of Adani group stocks did rebound and recover to some extent in the last two days amid these prepayments.
As of today morning (at the time of writing this report), most Adani stocks are again bleeding.
Adani Enterprise is again down 9%, Adani Transmission, Adani Total Gas, and Adani Power are down 5%, Adani Ports is down 3.5%, and Adani Green Energy is down over 4%. However, Adani Wilmar is up 4%.
Shares of Adani Group companies have been trading lower today following a two-day recovery. The drop is said to be prompted by MSCI¡¯s announcement of a review regarding the number of Adani Group-linked shares that are readily available for trading on public markets.?
Index provider MSCI is an American finance company that provides global equity, fixed income, real estate indexes, multi-asset portfolio analysis tools, and so on. Of the seven listed stocks of the Adani Group, all except Adani Wilmar are part of the MSCI global indices.
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