Stocks in focus. Adani promoters to prepay $1.1 billion to release pledged shares in three firms

Adani Group promoters have announced prepayment of $1,114 million ($1.11 billion or nearly ₹9,203 crore as per current exchange rate) to release the shares in group entities Adani Ports and Special Economic Zone (APSEZ), Adani Transmission (ATL) and Adani Green Energy (AGEL). “In light of recent market volatility and in continuation of the promoters’ commitment to reduce the overall promoter leverage backed by Adani listed company shares, we are pleased to inform that promoters have posted the amounts to prepay $1,114 million ahead of its maturity of September 2024,” said an Adani statement. Following this, 168.27 million shares (or 12 per cent of the promoters’ holding) will be released in APSEZ, 27.56 million shares (about 3 per cent) in AGEL and 11.77 million shares (1.4 per cent) in ATL will be released. As on December 2022, promoters held 65.13 per cent shares in APSEZ, of which 17.31 per cent or 243.58 million shares were pledged. This will now reduce to 5.31 per cent. In AGEL, of the 60.75 per cent promoter holding, 4.36 per cent (or 41.96 million shares) was pledged, which will not stand at 1.36 per cent. And for ATL, of the total promoter holding of 74.19 per cent, 6.62 per cent (54.83 million shares) was pledged, which will reduce to 5.22 per cent. It wasn’t immediately clear how the Group would fund the prepayments. “This is in continuation of promoters’ assurance to prepay all share backed financing,” it said.