India’s Adani Group is moving to reduce the debts of its listed companies further as seeks to counter doubts following a scathing report released by Hindenburg Research in late January.
Gautam Adani’s port-to-power conglomerate is reportedly looking to prepay or repay share-backed loans worth between $690-$790 million by the end of March 2023, sources have said.
The group is keen to improve its credit profile and regain the confidence of investors and global financial institutions after the short seller’s attack depleted its total market value by close to $150 billion.
Adani Green Energy, one of the worst-affected in terms of market valuation, plans to refinance its 2024 bonds via a $800 million, three-year credit line, according to the sources who spoke to Reuters.
Those plans were reportedly presented by the Adani management to the group’s bondholders in Hong Kong on Tuesday.
However, Adani Group CFO Jusgeshinder Singh said on the sidelines of an investor roadshow that the conglomerate is not seeking to refinance debt or inject capital.
Adani Group has not officially commented on the fresh debt repayment plans. But on Monday, the group dismissed a report, which claimed that the group was looking to raise debt against shares of a key Australian asset.
Several media reports over the past few weeks indicate that the Adani Group is trying to reduce its debt levels, as that appeared to be the biggest worry among investors and stakeholders.
Adani’s seven listed companies have lost more than half their market value since the January 24 report by Hindenburg Research alleged stock manipulation and improper use of tax havens, and flagged concern over its “precarious” debt level.
The group has strongly rejected the allegations and denied wrongdoing, but investors have had their doubts, leading to heavy losses for all of the conglomerate’s listed entities.
However, Tuesday was a better day. Shares of flagship Adani Enterprises Ltd were up over 11.5% in afternoon trade, while Adani Green Energy and Adani Wilmar were up by over 4%, while Adani Ports was up close to 6%. Adani Transmission, though, was down about 5%.
- Reuters with additional editing by Jim Pollard