Adani Group plans to repay up to $790 million share-backed loans by March-end

Share

Tweet

Share

Share

Email

Comments

Adani Group reportedly plans to prepay or repay share-backed loans worth between $690-790 million by end of March this year. This plan comes as the conglomerate seeks to polish its credit profile after the damning report by Hindenburg Research eroded its fortunes. 

Adani Green Energy also plans to refinance its 2024 bonds through a $800 million, three-year credit line, as per a Reuters report that cited sources who declined to be named. These plans were presented by the management to the group’s bondholders in Hong Kong on Tuesday. 

Read More: These 6 small finance banks offer the highest interest rate on FDs to senior citizens? Check full list

These plans come after the conglomerate’s seven listed companies lost over $140 billion in market value since January 24, which is when the Hindenburg report was published. 

More recently, JPMorgan Chase & Co’s asset management unit offloaded shares in the group, as per reports. JPMorgan Global Emerging Markets Research Enhanced Index Equity ESG UCITS ETF offloaded 70,000 shares in cement manufacturer ACC Ltd., and exited a stake it had held since May 2021. 

JPMorgan AC Asia Pacific ex Japan Research Enhanced Index Equity ESG UCITS ETF also sold 1,350 shares it had held in ACC since July last year. JPMorgan once held 0.04 per cent in ACC but now has no exposure to any parts of the Adani conglomerate via ESG funds.

Read More: Elon Musk is World’s Richest Person Once Again As Tesla Shares Rise Over 70% in 2023

Adding salt to the wound, valuation guru Aswath Damodaran said in his latest blog that the Adani Group collectively carries about three times as much debt as it should, “confirming that the group is over-levered.” He however clarified that this is bad business practice, not a con.

Adani Group shares extended recent losses on Tuesday morning. Shares of Adani Enterprises fell 4.95 per cent to hit a low of Rs 1,135, Adani Power Ltd was down 4.27 per cent to Rs 133.55, Adani Transmission Ltd declined 5 per cent to Rs 642.55, Adani Green Energy Ltd fell 5 per cent to Rs 439.35, Adani Total Gas Ltd was down 5 per cent to Rs 680.20, and Adani Wilmar dropped 4.71 per cent to Rs 328.

(With Reuters inputs)