Adani Shares Grab Spotlight As Group Prepares To Refinance $3.5 Billion Debt

The Adani group stocks remained on investors' radar on Friday after a media report highlighted that the Gautam Adani-led Indian conglomerate is looking to ink a definitive agreement on refinancing its $3.5 billion loans concerning the acquisition of ACC Ltd and Ambuja Cements Ltd.

According to a report by the Economic Times (ET) at least 18 global banks have agreed to join the consortium led by Barclays, Deutsche Bank, and Standard Chartered among others, for refinancing the debt that helped fund the biggest merger & acquisition (M&A) in India's building-materials industry.

The report said that the loan agreement, was anticipated to be signed late Thursday night and the promoter Adani family, in accordance with the part of new terms, was supposed to repay nearly $300 million debt. As per the ET report, this would be the biggest refinancing exercise across the Asia Pacific this financial year.

The new three-year facility from the 18-bank consortium is expected to simplify debt structure, improve credit rating, and support Adani group's cement sector growth plans.

Meanwhile, a separate report by Bloomberg indicated that the deal could be finalized this week. The support shown by 18 global banks to refinance Adani Group's debt is seen as the latest sign of confidence among creditors in the Indian conglomerate. Adani stocks faced challenging times after the US Short seller Hindenburg's research on January 24, 203 leveled charges of "brazen stock manipulation and accounting fraud schemes" by Adani group. The Supreme Court is slated to take up the Adani-Hindenburg matter today.

Today, most Adani group stocks traded in the red. The share price of Adani Enterprises was down 0.58% at Rs 2388 per share at 1:38 pm IST. The share price of Ambuja Cements Ltd fell 1.88% at Rs 429.10 at 1:40 pm IST. Adani Green Energy shares were down 0.08% at Rs 932.10 at 1:41 pm IST.