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Adani stocks decline, CFO says share-backed loans paid in full


NEW DELHI: Shares of Adani Group companies fell sharply on Tuesday and wiped out the combined market capitalization of its 10-listed companies by more than Rs 50,000 crore after a report raised questions about whether the group has repaid debts worth $2.15 billion.

All the 10 group stocks closed in the red on Tuesday, with five out of the 10 group stocks hitting lower circuits. A report by the Ken noted despite the Adani Group’s claim of ‘complete’ repayment of $2.15 billion in share-backed debt, regulatory filings show banks have not released a significant portion of the promoters’ shares held as collateral, indicating that the debt has not been fully paid off.

The Group’s chief financial officer on Tuesday rejected the report. In a tweet, CFO Jugeshinder Singh said data will be updated on the exchanges after the end of the current quarter. He said the report could have simply seen the group’s public disclosure on the payments “and would have easily verified that all margin loans of the promoters have been paid in full”.

The Ken, however, claims under Indian laws, banks and listed firms must disclose to stock exchanges the release of shares upon repayment of debt. “But neither banks nor listed Adani companies have made disclosures to stock exchanges regarding the release of Adani companies’ pledged shares,” it noted. The exchanges have sought a clarification from Adani Enterprises, which remained unanswered by 9pm.

The Adani Group had earlier this month announced the completion of the full prepayment of margin-linked share-backed financing, ahead of the committed timeline of March 31. The prepayment of loans, along with US-based GQG Partners Rs 15,446 crore investment, had rescued the Group stocks from continuous freefall following the Hindenburg report.

The cumulative market cap of the Group stocks has again come down below Rs 9 lakh crore to Rs 8.89 lakh crore. The market cap of the Group on the exchanges was about Rs 19.20 lakh crore on January 24, the day when report was published.

Adani debt repayment

A report said despite Adani Group’s claim of ‘complete’ repayment of $2.15 bn in share-backed debt, regulatory filings show banks have not released big portion of promoters’ shares (THE NEW INDIAN EXPRESS)

64 Days ago