Adani Group engaged in making a tremendous comeback in the market, repaid big loan ahead of time


New Delhi,

The Adani Group, which has been in trouble for more than a month, is now trying to regain its credibility in the market in a tremendous way. On Sunday, a day before the market opens on Monday, the Adani Group has made full payment of margin linked share backed financing (money taken in lieu of stock) of US $ 2.15 billion ahead of time. The deadline for Adani Group to pay this amount was till 31 March. This step is being seen as winning the confidence of investors after the Hindenburg report.

Adani Group has suffered huge losses after the Hindenburg report. Everyday he had to bear the loss of about 3 billion dollars. Due to falling share prices, the market capitalization of Adani Group also fell below $100 billion. The adverse impact on investor sentiment due to this report snatched away the deals with DB Power, PTC India and Orient Cement. Not only this, he also had to withdraw his Rs 20,000 crore follow on public offer (FPO).

Adani Group is engaged in winning the trust of investors
At the same time, now Adani Group is constantly trying to improve its image. The group has taken many such big decisions, so that investors’ trust can be won again. The group says that it has also repaid the $500 million finance it had taken for the Ambuja Cement acquisition. The group says that this step has been taken in the direction of fulfilling the promise of the promoters to increase the equity contribution. Explain that the promoters have invested US $ 2.6 billion for Ambuja and ACC out of the total acquisition price of US $ 6.6 billion.

Adani Group giving message of improvement in financial condition
The entire pre-payment of US$ 2.65 billion within 6 weeks is believed to have given a message of strong management of the Adani Group. Along with this, there is a way to assure the investors at the sponsoring level. The move reflects the company’s efforts to improve its financial health and strengthen its balance sheet. It also sends a positive signal to the market about the financial health of the company, which was seen as a major improvement in the environment following the Hindenburg Report. The Adani Group is focusing on reducing its debt and improving its financial position. In November 2021, the group announced that it would reduce its debt to zero within the next two years.

Heavy loss in Adani-Hindenburg dispute
January 2023 Hindenburg Research publishes findings of a two-year investigation alleging market manipulation and accounting fraud by Adani. The report accuses Adani of perpetrating ‘the biggest fraud in corporate history’, saying the report has committed ‘stock manipulation and accounting fraud over the course of decades’. Hindenburg also disclosed that he held short positions in Adani group companies. A few days later, the Adani Group issued a 413-page statement regarding the Hindenburg Report, in which it was said to be misleading. Added it as a planned attack on India.

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