Adani Group to pre-pay loans worth $1,114 million: Know why

This is significance in view of the allegations of fraud and stock manipulation by a short-seller against the Adani Group, which led to a steep fall in the share prices of group firms.

Mumbai, Feb 06: Adani Group will pre-pay USD 1,114 million for the release of pledged shares of its firms ahead of the maturity in September 2024.

These shares belong to Adani Ports & Special Economic Zones, Adani Green Energy and Adani Transmission, a statement said.

The move is significance in view of the allegations of fraud and stock manipulation by a short-seller against the Adani Group, which led to a steep fall in the share prices of group firms.

"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 USD 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.

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

Adani Enterprises on Wednesday called off its Rs 20,000 crore share sale due to prevailing market conditions, the company said in a statement.

It comes days after the company's stocks took a beating following criticism by American short seller Hindenburg Research.

Adani Group stocks have taken a beating on the bourses after Hindenburg in the report made a litany of allegations, including fraudulent transactions and share price manipulation, at the Gautam Adani-led group.

However, the company slammed the Hindenburg Research Report calling it a "calculated attack on India.

"In a 413-page response, Adani Group said the report was driven by "an ulterior motive" to "create a false market" to allow the US firm to make financial gains.

"This is not merely an unwarranted attack on any specific company but a calculated attack on India, the independence, integrity and quality of Indian institutions, and the growth story and ambition of India," it said.