Adani shares gain up to 5% after Group repays Rs 7,374 cr share-backed loan

So far in the last two months, the Adani Group now have prepaid share-backed financing up to $2,016 mn as part of the promoters' commitment to cut overall leverage.

Shares of Adani group rallied up to 5 per cent on the BSE in Wednesday’s intra-day trades after the group on Tuesday said it prepaid share-backed financing worth Rs 7,374 crore, as part of its promoters' commitment to cut overall leverage backed by shares of the Group's listed companies.

The group said it has paid the ahead of its latest maturity in April 2025. With the repayment of the said Rs 7,374 crore to various International Banks and Indian financial institutions, the shares of four Adani listed companies shall be released, it said.

Promoters of the group's flagship firm, Adani Enterprises (AEL) will release 31 million shares, or a 4 per cent stake, while Adani Ports & Special Economic Zone (SEZ)'s promoters will release 155 million shares, or an 11.8 per cent stake, the group said in a statement.

Promoters of Adani Green Energy (11 million shares) and Adani Transmission (36 million shares) will release 1.2 per cent and 4.5 per cent stakes in the respective companies. READ MORE

Along with the repayments done earlier in February, Adani has now prepaid $2,016 million of share-backed financing, which is consistent with promoters’ commitment to prepay all share backed financing before 31 March 2023, the group said.

Following the announcements, shares of Adani Green Energy (Rs 619.60), Adani Transmission (Rs 819.90), Adani Total Gas (Rs 861.90) and Adani Power (Rs 186.75) were locked at the 5 per cent upper circuit on the BSE. AEL, Adani Wilmar. ACC, Ambuja Cements, Adani Ports and New Delhi Television (NDTV) were up in the range of 1 per cent to 5 per cent. In comparison, the S&P BSE Sensex was down 0.21 per cent at 60,097 at 09:39 AM.

Meanwhile, in another development, the stock exchanges have revoked the short-term additional surveillance measure (ST-ASM) applied to AEL. The move effective from March 8, will ease trading restrictions, such as higher margin requirements, while dealing in shares of AEL.

AEL and a few other Adani stocks were moved to ST-ASM due to selloff triggered by Hindenburg Research’s January 24 report.