Adani Group to pre-pay $1.1bn loans

New Delhi: Adani Group on Monday announced that promoters will pre-pay $1,114 million for the release of pledged shares of its firms ahead of the maturity in September 2024 while saying the step is being done "in light of the recent market volatility". 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.

The 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. Earlier in the day proceedings of both Houses of the Parliament were adjourned for the third day following uproar by opposition over Adani issue. The opposition members are demanding a probe by joint parliamentary committee or Supreme Court monitored inquiry into the matter. "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 USD 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 Energy, 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. Share prices of Adani Transmission dropped 10 per cent to hit the lower circuit at Rs 1261.40 per piece on BSE.

Adani Green Energy also hit the lower circuit of 5 per cent at Rs 887.55 per share on BSE. Adani Ports & Special Economic Zones shares rose 9.46 per cent to close at Rs 546.05 on BSE. Finance Minister Nirmala Sitharaman on Sunday said the banks and insurance companies are "not overexposed" to any one company and assured that Indian markets are very well managed by its regulators. "Yes, there have been occasional blips in the market, maybe small or big, but they do address issues like that. And I strongly believe that our regulators are seized of this matter," Sitharaman had said.

Adani Group stocks are witnessing a meltdown on the bourses after the US-based short-seller Hindenburg Research made a litany of allegations in a report, including fraudulent transactions and share price manipulation at the Gautam Adani-led group. The Adani group has dismissed the charges as lies, saying it complies with all laws and disclosure requirements.

Hindenburg released the report on January 24 -- the day on which Adani Enterprises' Rs 20,000-crore follow-on share sale opened for anchor investors. Though the follow on public offer (FPO) was over-subscribed, the Adani group decided to scrap the FPO.

"I don't want to have any view on it except that the regulators should act, act in time, and act to keep the market stable, act to keep India's regulatory functions at its best, whether it is the Reserve Bank, or SEBI.