4 Adani group stocks locked in 5% upper circuits in weak market

Adani Group said it has completed full prepayment of margin linked share backed financing aggregating to $2.15 billion, well before committed timeline of 31 March 2023

Shares of select Gautam Adani-led group companies were trading firm in a weak market, with four of them locked in 5 per cent upper circuit on the BSE, on Monday.

Adani Transmission (Rs 949), Adani Total Gas (Rs 997.65), Adani Green Energy (Rs 717.20), and Adani Power (Rs 215.50) were locked in the 5 per cent upper circuit, while Adani Enterprises was up 1 per cent on the BSE at 02:48 PM. However, Adani Ports and Special Economic Zone, Ambuja Cements, ACC, and New Delhi Television (NDTV) were down in the range of 1 per cent to 4 per cent. In comparison, the S&P BSE Sensex slipped 1.6 per cent or 924 points at 58,211.

As part of their debt pre-payment plan, the Adani family has fully paid margin-linked share-backed financing of $2.15 billion before the March-end deadline. Besides, the promoters have also prepaid a $500-million facility taken for Ambuja acquisition financing.

This is in line with promoters' commitment to increase equity contribution and promoters have now infused $2.6 billion out of total acquisition value of $6.6 billion for Ambuja and ACC, Adani group said in a press release.

The entire prepayment program of $2.65 billion has been completed within 6 weeks, which testifies the strong liquidity management and access to capital at sponsor level, supplementing the solid capital prudency adopted at all portfolio companies, the group said.

Meanwhile, as per media reports, Adani Group is planning to sell 4-5 per cent stake in Ambuja Cement and raise about Rs 3,600 crore ($450 million). The deal will be executed through a block on the stock exchange in a few days depending on market conditions, to reduce the overall debt of the group. READ MORE

As per media reports, Adani group officials have met bond investors in Singapore and Hong Kong to soothe their concerns that the conglomerate's access to funds were under control followed by the drive to Dubai, London and the US.

Meanwhile, more than a dozen entities, both domestic and foreign, had come under the regulatory glare over alleged short-selling before and after the publication of the Hindenburg research report against Adani Group, the Business Standard reported, quoting two people familiar with the development.

Most of the Adani group stocks have rebounded from their respective lows hit on March 1, 2023. Star fund manager Rajiv Jain-led GQG's $1.9 billion share purchase in four group firms from Adani promoters has eased concerns around high debt levels. Further, the move by the promoters to revoke pledged shares has also helped revive sentiment. After Hindenburg Research’s report on January 24, the group had shed over Rs 12 trillion in market cap.