Gautam Adani and his family reportedly prepaid all borrowings backed by the Adani Group shares, as per senior executives who told investors at a meeting in London. The meeting was part of the conglomerate’s roadshow in London, organised as part of their attempts to assuage investor concerns about the group’s finances.
This development, as reported by Bloomberg, comes after the embattled conglomerate repaid a $500 bridge loan that was due on Thursday. The money was released to the creditors on Tuesday. The loan was, as per media reports, taken to buy controlling stakes in cement companies ACC Ltd and Ambuja Cements Ltd, and was underwritten by Barclays, Deutsche Bank, and Standard Chartered.
The conglomerate, in an effort to rebuild investor confidence, organised roadshows in Singapore and Hong Kong, and is organising the same in Dubai, London and several cities in the US. It also seeks to allay concerns about its debt by pre-paying loans.
Roadshows, key to the success of public offerings, are a series of presentations put up for investors at various locations before a public issue in order to shore up investments and present investors with investment opportunities.
Meanwhile, Florida-based investment firm GQG Partners picked up stakes worth $1.87 billion in four Adani companies including Adani Ports and Special Economic Zone, Adani Green Energy, Adani Enterprises Ltd and Adani Transmission.
Subsequently, GQG Partners founder Rajiv Jain said that they firm would likely expand its investment in the Adani Group. "Chances are we'll probably buy more because we typically initiate a position and then depending on how things go and how the earnings come through we tend to get it to full size because we're not at full size at this point," Jain said on a call with journalists in Sydney.
He said that their clients responded in a “more positive” way than he could have anticipated on the Adani deal. "We do our deep dive, and we don't follow the herd," he said.
Also read: Adani Group repays $500-mn bridge loan due Thursday to boost investor confidence: Report