Adani Group frees pledged shares worth ₹2,878 crore in Q3

livemint.com:

MUMBAI : Infrastructure conglomerate Adani Group has released pledged shares worth ₹2,878 crore ($346.2 million) related to four of its companies during the December quarter, BSE data analyzed by Mint showed. The group released a total 28.67 million pledged promoter shares across Adani Enterprises Ltd, Adani Green Energy Ltd, Adani Ports and Special Economic Zone Ltd, and Adani Energy Solutions Ltd. Notably, the group has reduced its pledge positions related to ACC Ltd and Ambuja Cements Ltd to zero, from 11.72% and 100%, respectively.

This follows a $3.7-billion refinance deal with a consortium of foreign banks in October, which allowed Adani Group to repay its acquisition loan for ACC and Ambuja Cements, potentially lowering its borrowing costs. “Adani Group’s release of ₹2,878 crore worth of pledged shares in four companies, mainly through internal accruals, is a positive signal for investors, potentially boosting confidence," said Kranthi Bathini, director of equity strategy at Wealth Mills Securities Pvt. Ltd.

“Pledged shares can raise concerns when increasing. But Adani Group’s focus on managing debt and deleveraging books with strong free cash flows demonstrates sound financial management," Bathini said. “These factors, along with better liquidity management, are likely to improve the company’s cash flow in the short- to medium-term." The Adani Group is emerging from a turbulent phase after the Supreme Court earlier this month dismissed petitions that had sought a separate investigation into allegations by US short-seller Hindenburg Research alleging wrongdoings by the conglomerate.