Adani Group share pledge meant for top-up margin rule, not for fresh loan: SBICap Trustee

Three Adani Group companies pledged shares for lenders to Adani Enterprises as part of a top-up required to maintain the security coverage, and not for a new loan, said SBICap Trustee.

Adani Ports and Special Economic Zone, Adani Transmission Ltd and Adani Green Energy Ltd pledged shares to SBICap Trustee Co, a unit of State Bank of India, said in a February 10 filing to the Bombay Stock Exchange, according to a CNBC TV-18 exclusive report.

The Trustee said Adani Group had drawn a facility for Carmichael Mine development. For this facility, it is required to keep 140 percent of margin.

The Carmichael project is operational and is generating cash. SBICap Trustee said all of its exposures are secured by EBITDA generated by project assets.

“We don’t see any challenge with respect to servicing of any loans by the Group in question. No need to discuss loan serviceability at this point in time. The Group has adequate strength and surplus cash flow as of now,” said the debt firm.

The Adani Group, controlled by billionaire Gautam Adani, has lost more than $100 billion in market value since January 24, when a US short-seller issued a scathing report on the apples-to-airports conglomerate.

Hindenburg Research accused the group of stock manipulation and improper use of offshore tax havens. The conglomerate has rejected the firm’s findings and denied any wrongdoing.

With this latest tranche, the percentage of shares pledged towards this project, aggregates to 1.06 percent, 1.00 percent, and 0.55 percent of equity shares of Adani Green, Adani Ports and Adani Transmission, respectively.

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