Gautam Adani Was Faced With Margin Call On ₹9,250 Crore Loan Before Full Repayment: FT

Gautam Adani, whose business empire is under pressure over allegations of numerous inconsistencies, repaid a $1.1 billion (₹9,250 crore) share-backed loan last week after facing a margin call of more than $500 million (₹4,126 crore).

What Happened? The Financial Times reported on Wednesday, citing four people that Adani’s and family’s ₹9,250 crore early payment towards debt backed by shares was because the conglomerate’s chairman was faced with a margin call of more than $500 million (₹4,126 crore).

Per the report, lenders which included the likes of Barclays, Citigroup and Deutsche Bank, requested the billionaire last week to top up the amount of stock pledged against the loan, following a disastrous fall in the shares of the listed Adani companies.

Soon after the Hinderburg Research report was released on January 24, Adani Group companies saw as much as ₹9,40,000 crore or roughly 50% of its value getting erased.

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Adani and family chose to repay the loans which weren’t due till September 2023, instead of posting cash against them.

The Adani Group stated that it did not receive a formal request for a margin call, and repaid the loans in full early "per our prepayment planning," the company added.

The stocks of Adani Group companies have been on a bit of a rebound this week after several listed entities of the conglomerate released their Q3 results on Tuesday. However, the markets haven't reacted well to MSCI's decision to review Adani shares’ membership on its index on Thursday.

Price Action: This is how Adani Group shares traded when markets closed on Thursday.

Adani Enterprises shares traded 10.72% lower at ₹1,927.30

Adani Green Energy was down 4.96% to trade at ₹761.95.

Adani Ports & SEZ was down 2.90% to trade at ₹582.05.

Adani Power shares hit lower circuit at ₹172.90 after dropping 5%.

Adani Total Gas shares traded 5% lower at ₹1,324.45.

Adani Wilmar was up 5% to trade at ₹440.30.

Adani Transmission shares were down 5% to ₹1,248.55.

Ambuja Cement shares traded 6.86% lower at ₹358.00. ACC shares traded 2.91% lower at ₹1,915.95.

NDTV was down 4.92% to trade at ₹216.55.

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Posted In: BarclaysCitigroupDeutsche BankGautam AdaniHindenburg Research