Feb 27, 2023By: Rounak Jain
The Adani group has undertaken several measures – from loan repayments and letting acquisitions lapse to cancelling a follow-on public offer (FPO) – to win back investor confidence following the damage caused by the Hindenburg report’s allegations of stock manipulation and fraud against the group. Here’s everything the group has done to shore up confidence since then.
The Adani group has suspended work on its ₹34,900 crore Mundra petrochemical project, with the focus now on consolidating operations, according to a report by PTI on March 19.
The promoter family has repaid $2.15 billion worth of share-backed loans on March 12, along with a $500 million financing facility taken for the Ambuja Cements acquisition.
It all started with Gautam Adani withdrawing Adani Enterprises’ ₹20,000 crore follow-on public offer (FPO) on February 1, saying it would not be morally correct to go ahead with the FPO – in spite of it being fully subscribed – after the stock price crashed in the aftermath of the Hindenburg report.
A Reuters report on February 3 stated that the Adani group made its scheduled US bond payments on time, after multiple Adani group bonds hit distressed levels. An earlier report had said that the interest payments due stood at $24 million.
The group promoters prepaid $1.1 billion on February 7 to release pledged shares in three group entities — Adani Ports & SEZ, Adani Green Energy, and Adani Transmission.
The Adani group called off its ₹7,017 crore acquisition of DB Power. Group officials said they want to complete existing projects first before committing fresh capital expenditure.
Adani Ports & SEZ announced the repayment of a ₹1,500 crore loan to SBI Mutual Fund on February 20, and also said it will repay another ₹1,000 crore of commercial papers falling due in March.
Adani Ports & SEZ announced that it will repay debt worth ₹5,000 crore in FY24.
Adani Green Energy announced in its Q3 earnings that it has put its ₹10,000 crore capital expenditure plans under review.
At the end of FY22, Adani group’s cumulative debt stood at ₹2.22 lakh crore, and Indian banks’ exposure to the group stood at ₹81,200 crore.
Since the Hindenburg report was released on January 24, the Adani group’s combined market capitalisation has fallen by ₹11.48 lakh crore to ₹10.46 lakh crore on March 20.
Gautam Adani fell from the third richest to the 21st richest in the world, with his wealth falling from $119 billion on January 24 to $57.5 billion on March 19.