Billionaire Gautam Adani and family have completed full prepayment of margin-linked, share-backed funding worth $2.15 billion before a March 31 deadline, the conglomerate said Sunday.
(Bloomberg) — Billionaire Gautam Adani and family have completed full prepayment of margin-linked, share-backed funding worth $2.15 billion before a March 31 deadline, the conglomerate said Sunday.
The founders of the Adani Group also prepaid a $500 million loan facility taken to finance the acquisition of Ambuja Cements Ltd. As a result, the founders have completed prepaying $2.65 billion within six weeks, according to the statement from the port-to-power conglomerate.
Read: Adani Repays $500 Million Bridge Loan to International Banks
The founders have also poured in $2.6 billion out of the total acquisition value of $6.6 billion for Ambuja Cements and ACC Ltd, the statement said.
All Adani Group stocks advanced on Monday when trading resumed in Mumbai after the tycoon’s efforts to restore confidence among investors. Four out of 10 Adani stocks including Adani Green Energy Ltd. and Adani Transmission Ltd. jumped by their 5% daily limit. The flagship Adani Enterprises Ltd. climbed as much as 4.7% while Adani Ports & Special Economic Zone Ltd. rose as much as 1.8%.
Earlier this month, the company said the founders had prepaid $902 million worth of borrowings backed by shares following another similar $1.1 billion prepayment in February.
Read: Adani Tells Investors All Share-Backed Loans Have Been Paid Back
The company had said at the time that the payments were “consistent with promoters’ commitment to prepay all share backed financing before 31 March 2023.”
On Sunday, the company said that the prepayments showed “the strong liquidity management and access to capital” and highlighted the “solid capital prudency adopted at all portfolio companies.”
The prepayments come weeks after a scathing report from Hindenburg Research that alleged stock manipulation and accounting fraud. It had expressed concerns over the founders’ shares in Adani Group companies being pledged for debt, saying that it was “effectively leveraging the group to the hilt.”
Hindenburg added that the equity share pledges were an unstable source of borrowing because of the possibility of a margin call. Adani has vehemently denied the accusations in the short seller’s report.
(Updates with shares action in the fourth paragraph.)
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