The Adani Group has taken a proactive step in reducing their overall promoter leverage. The group's promoters prepaid share-backed loans worth $1.1 billion on Monday, which was 19 months ahead of their maturity in September 2024. This prepayment will result in the release of pledge from three of the group's companies, Adani Ports, Adani Green Energy and Adani Transmission.
The release of these pledged shares is expected to have a significant impact on the stock market, with 168.27 million shares of Adani Ports & SEZ, 11.77 million shares of Adani Transmission, and 27.56 million shares of Adani Green Energy being freed from the pledge. According to the latest shareholding pattern, 17.3 percent of promoter holding in Adani Ports, 4.3 percent of promoter holding in Adani Green, and 6.62 percent of promoter holding in Adani Transmission is pledged.
“In light of recent market volatility and in continuation of promoters’ commitment to reduce overall promoter leverage backed by Adani Listed Company shares, promoters have posted the amounts to prepay USD 1,114 million ahead of its maturity of Sep 2024,” the Adani Group said in a statement on Monday.
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"This is in continuation of promoters' assurance to prepay all share-backed financing," it added.
The group has faced some challenges in recent times, particularly with regards to the stock market. The group's stocks took a hit on the bourses after a US-based activist short-seller Hindenburg Research made various allegations of fraudulent transactions and share price manipulation against the Adani Group. As a result of the volatility caused by the Hindenburg report, Adani Enterprises had to call off its Rs 20,000 crore FPO, which was fully subscribed due to the interest from institutional investors.
Despite these challenges, the Adani Group remains committed to reducing its promoter leverage, and the prepayment of share-backed loans is a testament to their dedication to this goal. The release of the pledged shares is expected to have a positive impact on the stock market, and investors are keeping a close eye on the Adani Group for further developments.