Most Adani group companies’ shares rose for the second day on Thursday, as reports that the group was looking to prepay loans boosted investor confidence. According to a report, Adani Group has received a firm commitment for an $800 million debt facility, which will be used to refinance.
Adani Green Energy’s $750 million 4.375 percent bond is due in September 2024. According to the report, the debt facility could finalize the term sheet within the next five days.
A Quick Overview
The report came after Reuters reported that the group planned to prepay loans totaling $690 million to $790 million by the end of March. This week, the Adani group holds a fixed-income roadshow in Singapore and Hong Kong to reassure investors.
Stakeholders Empowerment Services, a proxy advisory firm, believes Adani Group needs a third-party audit of its accounts to assuage shareholder concerns, even though the group’s debt may be exaggerated. Adani Wilmar Ltd gained 5% to Rs 379.45.
Adani Transmission Ltd increased its share price by 2.40 percent to Rs 658. Adani Ports Ltd was trading 2.06 percent higher at Rs 604.80. Adani Total Gas, on the other hand, fell 1.93 percent to Rs 667.05.
Adani Group shares lost $150 billion in value after a short seller, Hindenburg Research, accused the company of accounting fraud and stock manipulation. The organization has denied all allegations.
Final Note
“Along with reacting to Hindenburg, who is not a stakeholder, Adani must care for its stakeholders (investors and lenders) and address all areas of concern,” SES stated.
“With the exception that reputation loss will impact all companies, albeit in unequal measure on a case-by-case basis,” SES said, listing each group company’s financial details.
