Most Adani Group stocks recovered from Tuesday's loss except Adani Transmission Ltd., Adani Total Gas Ltd. and Adani Green Energy Ltd., after the conglomerate clarified the full pre-payment of debt amounting to $2.15 billion, or Rs 17,682 crore.
The clarification came after 'The Ken', a digital publication, claimed otherwise in a report on Tuesday.
'The Ken' report claimed that the group had not completed the repayment of the share-backed debt. It had cited regulatory filings, which said that banks had not yet released a large portion of Gautam Adani's shares held as collateral, implying the debt had not been fully paid off.
The company addressed 'the Ken' report, saying it had paid off share-backed financing amounting to $2.15 billion and that the stock pledged for those facilities had been released.
"All share-backed facilities availed of by the promoters have been paid off," the group said in a statement on Tuesday. The listed company positions for the flagship, the ports unit, Adani Green Energy Ltd. and Adani Transmission Ltd. have been substantially reduced, with only residual share pledges corresponding to operating company facilities still outstanding, the group said.
Operating company facilities are part of the units' existing debt structures, and no new facilities have been availed since the Hindenburg report, the group said. These facilities don't have covenants like cash margin calls or share-price linked put options, according to the statement.
Adani spokesman Jugeshinder Singh earlier tweeted that 'the Ken's' report was a "deliberate misrepresentation."
The report comes at a time when the group is working to restore confidence after allegations of stock manipulation and accounting fraud in a report by Hindenburg Research hit the conglomerate hard in January.
Disclaimer: AMG Media Networks Ltd., a subsidiary of Adani Enterprises Ltd., holds 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.
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