Adani Enterprises, Adani Wilmar, 6 other Adani shares gain as group repays loans worth $2.65 billion

Shares of eight out of 10 Adani group companies including Adani Enterprises and Adani Wilmar gained in Tuesday's trade, as the group announced completion of its prepayment programme, aggregating $2.65 billion. The group had went on deleveraging drive in an attempt to win back investor trust post a scathing report by the US short seller Hindenburg Research. Cash balance at Adani group's listed companies is up 41.5 per cent at $4.75 billion, or Rs 40,351 crore, said the conglomerate as part of its credit update for FY23.

Following the update, shares of Adani group flagship Adani Enterprises climbed 3 per cent to hit a high of Rs 2,507 on BSE. Ambuja Cements surged 3.58 per cent to Rs 454.70 while ACC advanced 2.26 per cent to Rs 1851.90. In a credit note released on Monday, Adani Group said it has made a full prepayment of $2.15 billion of loans that were taken by pledging shares in the conglomerate's listed firms before March 12, well in advance of March 31 deadline, and also another $700 million in loans taken for the acquisition of Ambuja Cements.

"The prepayment was done along with interest payment of $203 million,'' the group added.

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The credit update highlighted major improvements in key financial metrics - the portfolio's combined net debt to Ebitda ratio has decreased from 3.81 in FY22 to 3.27 in FY23, run rate Ebitda surged from Rs 50,706 crore in FY22 to Rs 66,566 crore in FY23. It suggested that the banking lines of Adani Group continue to show confidence by disbursing new debt and rolling over existing lines of credit.

Adani Wilmar rose 1.21 per cent to Rs 437.50. Adani Ports gained 0.56 per cent to Rs 742.95 while Adani Power added 0.46 per cent to Rs 260.65. Adani Green Energy edged 0.37 per cent higher to Rs 991.50.

Adani Total Gas edged 0.03 per cent higher at Rs 681.70.

Adani Transmission fell 1.21 per cent to Rs 819.55. NDTV inched 0.20 per cent lower to Rs 238.70.

“The deleveraging programme testifies the strong liquidity management and capital access at sponsor level even in volatile market condition, supplementing the solid capital prudency adopted at all portfolio companies,” said the Adani Group in the credit update.

The group's credit update stated that the promoters completed the sale of shares in four listed group entities to GQG Partners, a leading global investment firm, for $1.87 billion (Rs 15,446 crore). The update suggested that rating agencies, both domestic and international rating ones, have reaffirmed their ratings in all the group companies.

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