In a very bold move in the direction of damage control, the cash-flow rich, promoters of Adani Group companies have prepaid loans of up to $1.11 billion for the release of pledged promoter shares of some of its listed entities before the maturity date of September 2024. The move is likely aimed at instilling investor confidence after the recent sell-off of shares of listed entities of the group triggered by the release of the US-based short-seller Hindenburg report and Credit Suisse and Standard Chartered stopping accepting dollar bonds of the conglomerate as collateral.
In a statement the group said this has been done “in light of recent market volatility and in continuation of the promoters’ commitment to reduce the overall promoter leverage”.
After payment, 12% promoter stake in Adani Ports & SEZ, 3% in Adani Green Energy and 1.4% in Adani Transmission will be released. The group also clarified that the promoters have not pledged shares of its cement subsidiaries ACC and Ambuja Cement.
Earlier, as was reported, Adani Group promoters have pledged a stake of 2.66% in Adani Enterprises, 4.36% in Adani Green Energy, 17.31% in Adani Ports, 25.01% in Adani Power and 6.62% in Adani Transmission till December 31, 2022.
As of December-end, Gautam Adani, on behalf of SB Family Trust, held 37% shareholding in Adani Ports, 24.27% stake in Adani Green Energy and 56.48% stake in Adani Transmission, as per data on BSE.
Overall, the promoter shareholding is 65.13% in Adani Ports, 60.75% in Adani Green Energy and 74.19% in Adani Transmission.
Although the Exchanges have put shares of the group companies under the additional surveillance (ASM) framework, Union finance minister Nirmala Sitharaman has clarified that there was no significant exposure to the group for State Bank of India and LIC.
