- Shares belong to Adani Ports, Adani Green Energy, Adani Transmission
- Fluctuations in stock value are common, part of investment: Commerce Minister
- Easier to raise equity with good underlying businesses: Edelweiss Chairman
NE BUSINESS BUREAU
AHMEDABAD, FEB 6
Adani Group, on Monday, said the promoters will pre-pay $1,114 million for the release of pledged shares of its firms ahead of the maturity in September 2024.
These shares belong to Adani Ports & Special Economic Zones, Adani Green Energy and Adani Transmission, a statement said.
“This is in continuation of promoters’ assurance to pre-pay all share-backed financing,” it said.
This statement assumes significance in view of the allegations of fraud and stock manipulation by a short-seller against the Adani Group, which led to a steep fall in the share prices of group firms.
“In light of the recent market volatility and in continuation of promoters commitment to reduce the overall promoter leverage backed by Adani listed companies shares, we are pleased to inform that promoters have posted the amounts to pre-pay $1,114 million ahead of its maturity of September 2024,” the statement said.
On pre-payment, 168.27 million shares of Adani Ports & Special Economic Zones representing 12 per cent of the promoter’s holding will be released.
In the case of Adani Green, 27.56 million shares representing 3 per cent of the promoter’s holding will be released.
Also, 11.77 million shares of Adani Transmission representing 1.4 per cent of the promoter’s holding will be freed.
Indian banks willing to increase sanctioned limits of loans to Adani Group: Mint
Indian banks are in constant dialogue with the Adani Group and are willing to increase their sanctioned limits on loans to the Adani Group from USD 9 billion to USD 11 billion, as per a news report by Mint. The news daily also quoted another banker who said that the loans to the Adani Group’s companies are backed by cash-generating assets such as renewable power projects, long-term PPA projects, land banks, cash flows etc.
Fluctuations in stock value are common, part of investment: Commerce Minister
Union Minister for Commerce & Industries Piyush Goyal played down concerns about the steep fall in the shares of Adani Group stocks and said Saturday that fluctuations in the value of stocks is a common phenomenon and a part of the investment cycle. He also mentioned the statements made by the leaders of SBI and LIC about “their money is absolutely secure and safe.”
Easier to raise equity with good underlying businesses: Edelweiss Chairman
Speaking at The Indian Express Group’s Idea Exchange, Chairman and CEO of Edelweiss group Rashesh Shah showed confidence in the businesses of the Adani Group’s companies attributing to operating cash flow and positive EBITDA. Responding to a question on the Adani Group’s ability to raise equity in current scenario, Shah, expressing optimism, said that a lot of Adani Group’s companies have strong operating cash flow. “Promoter holding is high, which is always a good thing when you want to raise equity as then raising equity becomes easier. If there are good underlying businesses which have operating cash flow, positive EBITDA, it becomes easier to raise equity,” he added.
Adani given no favour: Finance Minister
Dismissing charges of the government favouring the Adani Group, Union Finance Minister Nirmala Sitharaman said that projects to the business group was awarded through open tender. She also said that the opposition was being hypocritical as their (other political parties) governments handed over land to the same business group to build ports and other projects.
