Adani repays loans against pledges in face-saving move
The group has made early payments on debt set to mature late next year in an attempt to reduce the number of shares pledged by the promoters.
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Editor's note: The Adani group has repaid over Rs 9,400 crore, or $1.11 billion, worth of loans that were borrowed against shares of the conglomerate’s listed entities. The loans were repaid ahead of their maturity of September 2024, according to a company statement. Nearly two weeks have passed since US-based short seller Hindenburg Research released its report against the Adani group. The group’s stocks have since tanked in the local markets, losing more than 47% of their value from $226.7 billion to $120.6 billion. Dollar bonds issued by the group continue to trade at a discount on international exchanges. Promoters of corporations use their shares as collateral in order to borrow money from banks and other lenders. At the Adani group, pledging shares for loans has always been high, but over the last few years they have brought down the share. The Adani group has around Rs 42,900 crore, or $5.2 billion, of pledged stake value, according to JP Morgan. Source: Adani Portfolio January 2023 Global Call Short Seller Response By repaying loans borrowed against pledged shares, a number of shares will …
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