Adani: Since the release of the Hindenburg report by the American company, Adani group companies have been suffering heavy losses. Along with the equity market, the bond market is also going to fail. This issue is shaking the Parliament too.
Both the Houses have been adjourning for days. But Adani companies deny the allegations. In this order the fully subscribed FPO was cancelled.. and the money was returned to the investors. Now the loans taken on shares are ready to be repaid before maturity.
No matter the time..
The promoters of the Adani group will have to prepay loans of $1.11 billion to release the pledged shares. Even though there is time till September 2024, due to fluctuations in the market, they are trying to clear the loan before maturity.
The Adani group said in a statement that they are releasing 9.34 percent in Adani Ports & SEZ, 10 percent in Adani Transmission and 5 percent in Green Energy.
As per assurance given:
This means that 168.27 million shares of Adani Ports (12 percent of the promoters’ holding), 27.56 million shares of Adani Green Energy (3 percent of the promoters’ holding) and 11.77 million shares of Adani Transmission (3 percent of the promoters’ holding) will be issued. The company said that these steps are being taken in line with the promoters’ assurance of early repayment of loans secured by shares.
Profits with Advertising:
The company said on Monday that it is releasing the pledged shares to reduce the concerns among investors about the balance sheet and debt repayment capacity of the group companies. Shares of Adani Ports rose over 6 percent to 528.40 on the announcement.
Nifty became the top gainer in 50. But Adani Total Gas, Adani Green Energy, Adani Power, Adani Wilmars were locked in the lower circuit by 5 percent and Adani Transmission stock by 10 percent. Shares of Adani Enterprises declined by almost 2 percent to Rs 1,564.90.
Panic in bond markets too:
Some rating agencies have raised concerns about Adani’s companies. Hindenburg lowered the outlook for reasons reported. Bond markets panicked as banks like Citigroup and Credit Suisse stopped accepting Adani’s securities as collateral.
As a result, the shares of Adani Ports, Adani Green Energy and Adani Transmission have lost more than 37 to 54 percent in the last 8 trading sessions. Banks have declared that there is no level of exposure to worry about. But market sources believe that the lenders will demand repayment of a portion of the loans.