Adani Group has reportedly told its creditors that it has secured $3 billion funding from a sovereign wealth fund, offering some relief to them. The move is part of the conglomerate’s effort to win back confidence of its investors after a report published by Hindenburg Research, accused the group of fraud and stock price manipulation that resulted in market rout for Adani Group companies.
According to a memo that was distributed to participants at Adani Group’s ongoing investor roadshow, the credit line offered by the sovereign wealth fund can be expanded to $5 billion, news agency Reuters reported citing people aware of the matter. However, the identity of the sovereign wealth fund has not been revealed yet.
The news of a new fundraising strategy broke only a day after Adani management informed bondholders that it anticipated to prepay or refund share-backed loans worth between $690-$790 million by the end of this month.
Earlier this week, billionaire Gautam Adani-led Adani Group announced its plans to organise its fixed income road shows in multiple locations across Asia.
As of now, seven of the listed Adani Group entities have lost some $135 billion in market capitalisation since the US-based short-seller Hindenburg published its report on January 24.
However, in the last two trading sessions, Adani Group companies have pared some of its losses on the bourses. In Wednesday’s trading session, the group’s flagship company Adani Enterprises closed 15.76 per cent higher at Rs 1,579. Some of the Adani companies were locked in their upper circuits during the day’s trading with Adani Power, Adani Wilmar, Adani Green Energy, Adani Total Gas, Adani Transmission and NDTV closing 5 per cent higher.