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With the pre-payment of loans against shares, promoter holdings
of 12% in Adani Ports and Special Economic Zone Ltd, 3% in Adani
Green Energy Ltd and 1.4% in Adani Transmission Ltd will be
released, the embattled group said in a statement.
The loan pre-payment is "in light of recent market volatility
and in continuation of the promoters' commitment to reduce the
overall promoter leverage," the group said.
Adani Group plans to trim its capital spending while providing
more collateral in the form of stock pledges to lenders, Indian
newspaper Mint said, citing people close to the development.
"False report, on the contrary, Adani Group is moving to prepay
all LAS (Loans Against Shares) finance," a spokesperson for the
group said in a separate emailed statement to Reuters.
The group's domestic lenders do not plan to cut off the
conglomerate from utilising sanctioned but unused credit lines
for fears it could backfire and lead to defaults, Mint said in a
separate report, citing bankers.
In the brutal fallout of Hindenburg's report, investors dumped
Adani shares, while the group's flagship company, Adani
Enterprises, was forced to abandon a $2.5 billion share sale
last week. Meanwhile, Group Chairman Gautam Adani lost his title
as Asia's richest person and slipped down the global rankings of
the wealthy.
Shares of Adani Group companies have lost more than half their
market value, topping a cumulative $110 billion, after U.S.
short-seller Hindenburg Research last month raised questions
about the group's debt levels and use of tax havens.
(Reporting by Jahnavi Nidumolu, Additional reporting by Lavanya
Ahire and Siddharth Jindal in Bengaluru; editing by Jason Neely
and Dhanya Ann Thoppil)
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