Adani Group Plans To Pre-Pay ₹8,000 Crore Loans Against Shares In Bid To Boost Investor Confidence: Report

Adani Group is reportedly looking into the possibility of prepaying loans worth ₹7000-8000 crore in the next 30-45 days with the objective to bring down its loans against shares (LAS) to zero and provide some relief to investors.

What Happened? The conglomerate’s founder and chairman, Gautam Adani, is considering a move to pre-pay a large portion of the conglomerate’s loans against shares (LAS) portfolio of ₹7,000-8,000 crore taken at the shareholder level.

The loans are backed by share pledges and the group aims to reach a formal decision on a potential green light for the plan by late Monday, as per an Economic Times report. The group’s eventual goal is to start reducing the LAS exposure immediately and bring it down to zero in the next 30 to 45 days.

The report suggests that the promoter family might have unwound some of its existing shareholder positions, availed of strategic finance facilities and liquidated investments to organise the funds.

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The Adani Group currently has $1.8 billion or ₹14,845 crore of promoter-level loans. Some of these facilities have been taken from global banks like JP Morgan and Credit Suisse, and domestic NBFCs like JM Financial.

A report from over a week back suggested that the Adani Group was looking to buy back shares worth ₹3,000 crore in two of the group companies – Adani Ports & SEZ and Ambuja Cements. Stock exchanges had sought clarifications from the two group companies to which, both companies clarified that there was no such plan.

Meanwhile, British multinational bank Standard Chartered reportedly joined Citigroup and Credit Suisse as it stopped accepting Adani Group stocks as collateral for margin loans, adding to Adani Group’s woes on international soil.

Price Action: This is how the Adani Group shares traded on Monday afternoon.

Adani Enterprises shares traded 1.03% lower at ₹1,567.90.

Adani Green Energy was down 5% to trade at ₹887.55.

Adani Ports & SEZ was up 4.65% to trade at ₹522.05.

Adani Power shares traded 5% lower at ₹182.45.

Adani Total Gas shares traded 5% lower at ₹1,544.70.

Adani Wilmar shares have plunged 5% to ₹380.40.

Adani Transmission shares were down 10% to ₹1,261.40.

Ambuja Cement shares traded 0.41% lower at ₹372.15. ACC shares traded 1.06% higher at ₹1,946.80.

NDTV was down 4.98% to trade at ₹201.20.

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Posted In: Adani GroupCredit SuisseGautam AdaniJP Morganloans against shares