The conglomerate Adani said today that it would fully pay back margin-linked, share-backed financing worth $2.15 billion as part of its debt prepayment plan before the March 31 deadline. This news caused the stock price of Adani to surge by as much as 5 percent today.
Today, trading in all ten Adani equities was positive, with Adani Transmission, Adani Green Energy, Adani Total Gas, and Adani Power all locked in 5% upper circuit limits.
Adani Enterprises, the flagship company of the Adani conglomerate, was trading 3.4% higher at Rs 1,961 a share.
“This is in line with promoters’ commitment to increase equity contribution, and promoters have now infused $2.6 billion out of the total acquisition value of $6.6 billion for Ambuja and ACC,” Adani Group said in a statement last night.
In addition to repaying the $2.15 loan, the promoters also prepaid a $500 million facility that they had taken out for Ambuja purchase financing.
“The entire prepayment program of $2.65 billion has been completed within 6 weeks, which testifies to the strong liquidity management and access to capital at sponsor level, supplementing the solid capital prudence adopted at all portfolio companies,” the group said.
Adani Group paid $10.5 billion to buy Ambuja Cements and ACC, two cement companies owned by Holcim AG in India. This was the biggest deal the company had ever made.
Today’s trading results showed that shares of both cement firms were somewhat higher than they were yesterday. It was reported the week before last that the Adani family intends to sell a 4.5% share in Ambuja Cements by way of a secondary stake sale. This would be equivalent to a sale of 3,000 crore rupees.
Since the release of a damning report by Hindenburg Research, the Ahmedabad-based airport-to-apples conglomerate known as Adani has been the subject of intense scrutiny. As a result, the company’s stocks have been on a tear since the previous week, and positive headlines have been dominating conversations about the company.
Since then, the total market capitalization of all ten Adani stocks has decreased to half of what it was before.
The proprietors of the company sold equity shares in four firms to GQG Partners for a total of Rs 15,446 crore the week before last. It is anticipated that the profits from the sale of the shares would be employed for the repayment of debt in addition to assisting with liquidity across the many firms that make up the Adani Group.