Adani repaid a total loan of ₹7,374 crore

Along with this repayment to various international banks and Indian financial institutions, shares of four listed Adani companies will be issued, the Gautam Adani-led group said in a statement. The prepayment is being seen as another step to allay concerns among investors and lenders.

Adani Ports and Special Economic Zone Ltd. (155 million shares or 11.8%), Adani Enterprises Ltd. (31 million shares or 4%), Adani Transmission Ltd. (36 million shares or 4%) by number of issued shares and promoter shareholding Adani companies. 4.5%), and Adani Green Energy Limited (11 million shares or 1.2%).

In the last one month, the Adani family has paid 11,000 crore debt to bring down the group’s leverage.

With last month’s repayment, Adani has repaid $2.02 billion of share-backed financing, in line with the promoters’ commitment to prepay all share-backed financing before March 31, 2023, the statement said.

When the market opens on Wednesday after the Holi holiday, recovery may continue in some Adani Group stocks. prepayment of 7,374 crore, coupled with the removal of Adani Enterprises from the short-term additional surveillance measures (ASM) effective March 8, could provide a sentimental boost.

On Thursday, SB Adani Family Trust, a unit of the Adani promoter group, sold between 2.5% and 4.1% of its stake in Adani Enterprises, Adani Ports, Adani Green Energy and Adani Transmission. 15,446 crore through a series of bulk deals. However, Tuesday’s statement did not mention whether this money was used for the latest prepayment or not.

However, analysts caution that the rally may not be as sharp as that seen in Adani Enterprises recently, as the stock has rallied 66% from the low. 1,193 in five seasons 1,982 on 6 March.

Kriti Shah, an analyst at Equirus Securities, said, “The removal of the stock from the ASM is another positive on sentiment, but the price could go either way with a sharp drop in margins after exiting additional surveillance measures.”

“The prepayment and exit from ASM could add more legs to the ongoing rally since last week, especially with the group’s shares subject to a 5% price band,” said Hormuz Malu, director at AFCO Investments. on the news flow.”

Adani Group shares declined on January 24 after US short-seller Hindenburg Research issued a report alleging accounting fraud and price manipulation against the group. This forced Adani Enterprises to withdraw its company 20,000 crore follow-up public offering, and its stock has fallen 70% since the report became public. However, from late February, prices started correcting and gained momentum from March 2 after GQG Partners picked up $1.87 billion stake in Adani Enterprises, Adani Ports, Adani Green Energy and Adani Transmission from Adani Family Trust. These are companies whose share-backed debt has now been repaid.

Late last week, however, Adani Ports and Adani Total Gas suffered a setback as rating agency ICRA Ltd downgraded their outlook to negative from stable, though their ratings remained unchanged. On the other hand, ICRA has raised its rating for Adani Total Gas. 5,500 crores to 2,801 crores.