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NSE seeks clarification from Adani Enterprises on the status of pledge shares


The exchange has sought clarification from Adani Group’s flagship entity, Adani Enterprises Ltd, citing a report that raised questions about whether the empire has actually repaid debts worth $2.15 billion.

Shares of Adani Enterprises fell nearly 8 percent to a nearly four-week low, while Adani Ports plummeted 9.2 percent.

Shares of companies such as Adani Green Energy, Adani Power and Adani Wilmar all fell by a daily limit of 5 percent.

ACC fell 4.8 percent to its lowest level since February 2021 and Ambuja Cement fell 4.2 percent.

“Despite the Adani Group’s claim of “full” repayment of $2.15 billion in equity-backed debt, regulatory filings show that banks have failed to release a significant portion of the promoters’ shares held as collateral, indicating that the debt has not been fully paid off Ken report said.

The report alleged that the group reduced the loan amount only by a partial repayment to avoid pledging more shares and further action by lenders. It also noted that after the announcement of the group’s advance payment, banks released only the pledged shares of Adani Ports.

Moreover, it said that the pledged shares of Adani Green Energy and Adani Transmission had not been released by the bank even a month after announcing the repayment of the loan. “This is highly unusual, as pledged shares are usually released immediately after the borrower has paid its debts,” the report said.

“The Ken report is something that increases risk,” said Sameer Kalra, founder of Target Investing. “The global banking crisis has led to a tightening of liquidity and its costs,” Kalra noted.

Meanwhile, another report from the Economic times said the port-to-power conglomerate was attempting to renegotiate the terms of outstanding loans worth $4 billion it took out last year to buy cement companies ACC and Ambuja Cements.

The group, led by billionaire Gautam Adani, has entered negotiations with lenders to extend the term of the $3 billion bridging loan to a term of five years or more from the existing 18 months, the report said.

The conglomerate is also reportedly seeking to convert another $1 billion mezzanine loan, currently maturing at 24 months, into senior secured debt with a repayment schedule of up to five years.

The original plan was to refinance much of the borrowing through long-term bonds, but given current market conditions, that seems difficult, the report said.

With input from agencies

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Joanna Swanson

Joanna Swanson is Europe correspondent at the Thomson Reuters Foundation based in Brussels covering politics, culture, business, climate change, society, economies and inclusive tech. With specific focus in breaking news, she has covered some of the world's most significant stories.