Adani stocks in focus as group looks to refinance $3.5 billion debt

Shares of Adani group will be in focus on Friday amid a media report quoting people aware of the discussions, suggested that Adani Group was close to signing a definitive agreement on refinancing its $3.5 billion loans relating to the acquisition of ACC Ltd and Ambuja Cements Ltd.

As per the ET report, about 18 global banks agreed to join the consortium led by Deutsche Bank, Standard Chartered and Barclays, among others, for the refinancing of the debt of what was the biggest merger & acquisition in India’s building-materials industry last year.

The loan agreement, as per the report, was expected to be signed late Thursday night and the promoter Adani family, as per the part of new terms, was required to prepay around $300 million debt. As per the ET report, this would be the largest refinancing exercise across Asia Pacific this financial year.

The ET report further suggested that the new three-year facility from the 18-bank consortium would simplify debt structure, improve credit rating, boost Adani group's cement sector growth plans. It would, as per the report, save up to a quarter of a billion dollars.

Another report by Bloomberg suggested the deal could be sealed this week, adding that it would be the latest sign of confidence among creditors in the conglomerate. Adani stocks were hit earlier this year amid allegations of “brazen stock manipulation and accounting fraud schemes by Adani group firms over the course of decades” by the US-based short seller Hindenburg Research. The Supreme Court had deferred a hearing in the Adani-Hindenburg matter by one week. The apex court would now take up that matter today.

Data compiled from corporate database AceEquity suggested the cement manufacturers ACC and Ambuja Cements saw FPIs reducing stakes by 288 basis points and 0.78 per cent, respectively, in the September quarter. Mutual funds, on the other hand, upped stake in ACC by 331 basis points and Ambuja Cements by 88 basis points.

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