Most Adani Shares Rally After Group Prepays Loans Worth $1.11 Billion

Pledged shares of Adani Ports & Special Economic Zones, Adani Green Energy and Adani Transmission were released after the promoters prepaid $1.11 billion

Outlook Business Desk

Updated on: 7 February 2023 1:39 pm

Shares of billionaire Gautam Adani-led companies were witnessing strong buying interest a day after its founders prepaid loans worth $1.11 billion and got the pledged shares release ahead of the maturity in September 2024.

Shares of Adani Group flagship company Adani Enterprises rose as much as 25 per cent to hit an intraday high of Rs 1,965.50. Adani Ports and SEZ rose nearly 10 per cent to hit an intraday high of Rs 599, NDTV rose 4 per cent to Rs 223, Ambuja Cements gained 3 per cent to Rs 407, ACC rose 1 per cent to Rs 1,989, Adani Wilmar gained 5 per cent to Rs 399 and Adani Transmission gained 2 per cent to Rs 1,281.

On the other hand, Adani Total Gas 5 per cent to Rs 1,467 and Adani Power dropped 4 per cent to Rs 175.

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The development came at a time when the Adani Group was facing allegations of stock manipulation and fraud while many large foreign financial institutions like Citigroup and Credit Suisse among others stopped taking Adani Group securities as collateral for margin loans.

Pledged shares of Adani Ports & Special Economic Zones, Adani Green Energy and Adani Transmission were released after the promoters prepaid $1.11 billion, according to a statement releases by the company.

"This is in continuation of promoters' assurance to prepay all share-backed financing," the company said.

"In light of the recent market volatility and in continuation of promoters commitment to reduce the overall promoter leverage backed by Adani listed companies shares, we are pleased to inform that promoters have posted the amounts to pre-pay $1,114 million ahead of its maturity of September 2024", the statement said.

On pre-payment, 168.27 million shares of Adani Ports & Special Economic Zones representing 12 per cent of the promoter's holding will be released.

In the case of Adani Green, 27.56 million shares representing 3 per cent of the promoter's holding will be released.

Also, 11.77 million shares of Adani Transmission representing 1.4 per cent of the promoter's holding will be freed.