Adani prepays $2.15-bn share-backed financing, $500-mn loan for Ambuja deal ahead of deadline

Adani Group has completed full prepayment of margin-linked share-backed financing aggregating to $2.15 billion, before the committed timeline of March 31, 2023, the company said.

Promoters have also prepaid $ 500 million facility taken for the Ambuja acquisition. "This is in line with the promoters’ commitment to increase equity contribution and the promoters have now infused $2.6 billion out of a total acquisition value of $6.6 billion for Ambuja and ACC," the Gautam Adani-led conglomerate stated.

Adani added that the entire prepayment programme was completed within six weeks, which "testifies to the strong liquidity management and access to capital at sponsor level, supplementing the solid capital prudency adopted at all portfolio companies".

The development comes amid a report by Financial Times which suggested Adani issuing a formal request to global lenders for selling 4-5 percent stake in Ambuja Cement for $450 million to reduce debt.

In a $10.5-billion deal, Adani Group picked up Holcim Group’s entire stake in two Indian firms — Ambuja Cements and ACC. This is also the largest-ever acquisition by Adani, and India’s largest-ever M&A transaction in the infrastructure and materials space. Holcim sold its 63.19 percent stake in Ambuja Cements Ltd and 54.53 percent in ACC (of which 50.05 percent is held through Ambuja Cements) to Adani Group.

The ports-to-power conglomerate has been on a charm offensive to lure investors after Hindenburg Research released a report alleging stock manipulation and improper use of offshore tax havens by the conglomerate, which it has denied.

However, Adani stocks have rebounded after Australia-listed and Florida-based investment firm GQG Partners Inc picked up stakes worth Rs 15,446 crore in four of the group's companies, including flagship firm Adani Enterprises.

GQG would likely expand its investment in the group, the fund firm's founder Rajiv Jain said on March 8.

Rajiv Jain, Chairman and CIO of GQG Partners, said," We believe that the long-term growth prospects for these companies are substantial, and we are pleased to be investing in companies that will help advance India’s economy and energy infrastructure, including their energy transition over the long-run."