Billionaire Gautam Adani-led Adani Group has completed the full prepayment of a margin linked share-backed financing. The amount that aggregated to $2.15 billion has been repaid by the Adani Group, much before its March 31, 2023 deadline.
Weeks after the scathing Hindenburg Research report, the group’s promoters have also prepaid a $500 million-worth debt taken for Ambuja Cements. As stated by the company, the step of these payments is in line with the promoters’ commitment to repay the promoter leverage and to increase equity contribution.
“This is in line with the promoters’ commitment to increase equity contribution and the promoters have now infused $2.6 billion out of total acquisition value of $6.6 billion for Ambuja and ACC,” the Adani Group said in a statement.
In addition to this, the group also reasoned its “strong liquidity” and good health, contrary to Hindenburg’s claims. The entire prepayment process, which has been completed within six months, also comes at a time when the Adani Group stocks have been managing tricky waters at the Indian bourses. The company’s statement on the prepayment adds that this process “testifies the strong liquidity management and access to capital at sponsor level, supplementing the solid capital prudency adopted at all portfolio companies.”
Recently, the Adani Group stocks also reacted to the news of GQG Partners expected to increase investment in Adani’s companies surfaced. While no new official deal came to light, GQG’s founder Rajiv Jain did express that if everything was favourable, the move was on the cards.