Adani Group Achieves $2.65 Billion Deleveraging Success, Reducing Debt Burden

Adani Group, an Indian ports-to-power company, announced on Monday that it had completed a $2.65 billion deleveraging programme in its credit update for fiscal 2023.

The group's stock has lost more than $110 billion in value since January, when US short-seller Hindenburg Research accused it of stock manipulation and unlawful use of tax havens, as well as raising concerns about its debt levels, reuters reported.

Adani Group dismissed the news as "unsubstantiated speculations" at the time. The business reiterated in a statement issued on Monday that it had made a full prepayment of $2.15 billion in margin-linked share-backed borrowing, as stated in March.

Its promoters also settled $700 million in debt for the acquisition of Ambuja Cement, as well as $203 million in interest payments, and closed a secondary $1.87 billion transaction with GQG Partners for four significant listed firms, it added.

The portfolio's total net debt to earnings before interest, taxes, depreciation, and amortisation (EBITDA) ratio improved to 3.27 in fiscal 2023 from 3.81 the previous year, the group said in a statement on Monday.

The debt service cover ratio improved to 2.20x during fiscal 2023 from 1.4x the previous year.

"Domestic and international banks continue to show confidence across businesses by disbursing new debt and rolling over existing lines," the company said in its credit update.

"Affirmation of credit ratings has also facilitated access to credit facilities," it added.