Adani pays out $2.15 billion in share-backed loans and debt owed to Ambuja Cements.
Image credit: Bharat Times
The billionaire Gautam Adani-run Adani Group has fully prepaid a margin-linked, share-backed loan. The Adani Group has already paid back the total amount of $2.15 billion, well ahead of the March 31, 2023 deadline.
The owners of the group have also settled a $500 million debt for Ambuja Cements that was incurred weeks after the scathing Hindenburg Research investigation. The phase of these payments, according to the company, supports the promoters’ commitment to repay promoter debt and increase equity participation.
The Adani Group released a statement saying, “This is in accordance with the investors’ commitment to enhance opportunities to help, and the promoters have now contributed $2.6 billion out of the total acquired business of $6.6 billion for Ambuja and ACC.”
In addition, the group said that, in contrast to Hindenburg’s assertions, it had “strong liquidity” and was in good health. The entire prepayment procedure was finished in less than six months, and it did so at a time when the Adani Group equities were navigating murky waters on the Indian stock exchanges. In addition to the sound capital prudence practiced at all portfolio companies, the company’s statement on the prepayment notes that this approach demonstrates good liquidity management and the availability of cash at sponsor level.
The recent revelation that GQG Partners anticipated boosting investment in Adani’s firms caused the Adani Group equities to react as well. The creator of GQG, Rajiv Jain, did say that if things went well, the relocation was likely to happen even if no new official arrangement was revealed.
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