Adani Group has introduced that it has accomplished the total prepayment of margin-linked share-backed financing, amounting to USD 2.15 billion, forward of the dedicated timeline of March 31, 2023. This transfer is part of the corporate’s dedication to repay the promoter’s leverage and to reassure investor confidence after Hindenburg’s report.

Moreover, the promoters have additionally pay as you go the USD 500 million facility taken for Ambuja acquisition financing, in step with their dedication to extend fairness contribution. Because of this, the promoters have infused USD 2.6 billion out of the full acquisition worth of USD 6.6 billion for Ambuja and ACC.

The fast completion of your complete prepayment program of USD 2.65 billion inside six weeks is Adani’s solution to reassure buyers of the robust liquidity administration and entry to capital on the sponsor degree. This additionally dietary supplements the stable capital prudence adopted in any respect portfolio corporations.

The transfer displays the corporate’s efforts to enhance its monetary place and strengthen its stability sheet. It additionally sends a optimistic sign to the market in regards to the firm’s monetary well being which is far wanted after the Hindenburg report debacle.

Adani Group has been specializing in lowering its debt and enhancing its monetary place. In November 2021, the group introduced that it could cut back its internet debt to zero throughout the subsequent two years.

Adani-Hindenburg debacle

In January of 2023, Hindenburg Analysis printed a two-year investigation’s findings, alleging that Adani had participated in market manipulation and accounting malpractices. The report accused Adani of perpetrating “the most important con in company historical past,” partaking in “brazen inventory manipulation and accounting fraud scheme over the course of many years.” Hindenburg additionally revealed that it held brief positions on Adani Group corporations.

A couple of days later, Adani issued a 413-page response to the Hindenburg report, denouncing Hindenburg’s conduct as a “calculated securities fraud” and the report as a “calculated assault on India, the independence, integrity, and high quality of Indian establishments, and the expansion story and ambition of India.”

Hindenburg characterised Adani’s response as a failure to handle the problems raised within the preliminary report, and an try and obscure the matter beneath the guise of nationalism.

Following the publication of the Hindenburg report in January 2023, the Adani Group skilled a big decline in its whole market capitalization or m-cap, with a lack of over Rs 12 trillion ($145 billion) in only one month. This represented a 63 per cent discount from its preliminary worth of Rs 19.2 trillion. Nevertheless, the Adani Group’s shares have since sharply recovered from their lowest factors.