Adani Group Firms' Pledged Shareholding Falls In March Quarter

The pledged or encumbered shares of four Adani Group companies fell in the quarter ended March.

Adani Ports and Special Economic Zone Ltd.'s shareholding, pledged against loans by the promoters, fell from 11.28% in December to 2.84% as on March 31, according to the quarterly shareholding disclosure on BSE Ltd.

Encumbered shareholding reduced from 1.94% to 0.44% for Adani Enterprises Ltd.; from 4.92% to 2.69% for Adani Transmission Ltd.; and from 2.65% to 2% for Adani Green Energy Ltd., according to the disclosures reviewed by BQ Prime.

Pledged shares declined after the Ahmedabad-based group fully repaid margin-linked share-backed financing aggregating to $2.15 billion, and released all shares offered as collateral.

The Adani Group promoters had raised funds by selling shares to U.S.-based GQG Partners and used the proceeds to release the pledged shares.

Data shows residual pledges in the four companies. The company had clarified in a statement on March 27 that these were against the operating company facilities.

The company also said that lenders holding residual pledges have been provided extra collateral for operating company facilities for additional comfort. These do not have covenants like cash margin calls and share price-linked put options that existed in share-backed financing.

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