Relief for Adani as it reportedly gets 12-18 month extension on repayment of $5 billion loan for Ambuja acquisition

The Adani Group has been under pressure ever since the Hindenburg Research report accused it of the biggest corporate fraud ever in February this year. But debt concerns had been raised much before that when Credit Sights had called it deeply overleveraged before modifying its observation last year.

But Adani's strategy of prepaying loans to rebuild confidence among lenders and investors seems to have paid off, as it has reportedly secured a 12 to 18-month extension on repaying a $5.25 billion debt.

Buying time

• The amount had been borrowed from 14 banks last year, to fund Adani's acquisition of ACC and Ambuja to expand its operations into the cement sector.

• Out of the total borrowings, loans worth $4 billion were up for repayment in 2024, but Adani repaid $200 million from it ahead of time.

• Thanks to this, Adani reportedly has time till 2025-26 to clear the debt, as it looks for strategic investors to raise more cash.

Respite after Hindenburg storm

• After losing $140 billion in value in a stock market rout triggered by the Hindenburg report, the port to power conglomerate had found respite in the form of a Rs 15,000 crore share sale to US-based GQG.

• As for the probe into the allegations, the Securities and Exchanges Board of India has sought an extension of six months to submit its report in the Supreme Court.