The Adani Group has received a shot in the arm in the form of a Rs 15,000 crore investment form US-based GQG Partners. This infusion has revived its stocks and triggered a surge of up to 95 per cent, after a month-long relentless decline. To further bolster the positive investor sentiment, the port to power conglomerate has reportedly repaid a $500 million bridge loan among others.
Rebuilding investor confidence with cashflow
Such loans are provided by banks for an interval between two transactions, and the payment is among many others by Adani, cleared ahead of time. The firm has so far paid back $2 billion, which had been borrowed against shares. Adani had started clearing share-backed loans after allegations of using inflated stocks to borrow money, in the Hindenburg report.
Part of Adani’s big prepayment push
The group had picked up $4.5 billion from banks across the globe to fund its takeover of Holcim, but banks were reluctant to refinance it after the Hindenburg fiasco. The reported transaction comes a day after the prepayment of more than $900 million by Adani, for a loan which will mature in April 2025. Adani is also on track to receive more investments from GQG, based on earnings and performance.