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Adani Group announced on Sunday that it has fully repaid loans totaling USD 2.65 billion ahead of the March 31 deadline, in an effort to reduce overall leverage and regain investor trust following a damaging report from a US short seller.

The group stated that it has repaid USD 2.15 billion of loans that were secured by shares in its listed companies, as well as an additional USD 500 million in loans used for the acquisition of Ambuja Cement.

This announcement follows the recent repayment of Rs 7,374 crore (about USD 902 billion) in loans secured by shares in four group companies, which has now been increased to USD 2.15 billion.

While the source of the repayment funds has not been detailed, it comes after the promoters sold minority stakes in four listed companies to US-based GQG Partners for Rs 15,446 crore.

The group emphasized its commitment to reducing promoter leverage and increasing equity contribution, with the repayment of USD 2.15 billion in margin-linked share-backed financing and an additional USD 500 million facility for the Ambuja acquisition.

The entire prepayment program of USD 2.65 billion was completed within 6 weeks, demonstrating strong liquidity management and access to capital at the sponsor level, in addition to the solid capital prudency adopted by all portfolio companies.

Following the repayment of Rs 7,374 crore on March 7, more shares belonging to group companies were pledged as security for loans taken by the flagship firm.

The group’s founder chairman, Gautam Adani, and his brother Rajesh announced the sale of shares in several group companies, which helped to shift the narrative following the damaging report from the US short seller.

The group has been working to reduce its debt and regain investor confidence after facing allegations of substantial debt levels and accounting fraud, which it has denied.

It is now focusing on slower and more sustainable growth, and has made efforts to repay debt and rein in expenses.

The Adani Group’s gross debt has doubled in the last four years, and it faces significant foreign-currency bond repayments in 2024.

During a presentation to investors last month, the group revealed that its gross debt had grown from Rs 1.11 lakh crore in 2019 to Rs 2.21 lakh crore in 2023. After including cash, the net debt was Rs 1.89 lakh crore in 2023.

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