New Delhi: Adani Ports and Special Economic Zone, a subsidiary of the Adani Group, announced on Tuesday that it would repay $130 million of its debt early, following a tender of nearly $413 million worth of debt for early payment. Last month, the company offered a tender of up to $130 million of 3.375% 2024 maturity dollar-denominated bonds as it seeks to improve investor confidence after a U.S. short-seller’s report led to a drop in the group’s shares earlier this year.
The Adani Group, led by billionaire businessman Gautam Adani, has seven listed stocks that have lost around $114 billion in market value since a report by Hindenburg Research accused the group of improper use of offshore tax havens and stock manipulation on January 24. However, the group has denied all allegations.
By paying off its debt early, Adani Ports hopes to reassure investors that it is taking proactive measures to manage its finances. This is particularly important as the Adani Group faces increased scrutiny from regulatory authorities and investors alike. The group’s shares have recovered somewhat since the Hindenburg report, but it still faces significant challenges as it seeks to regain the trust of investors and rebuild its reputation.
On May 4, Adani Ports announced that it had achieved its highest-ever monthly cargo volume in April. This growth in cargo volume was driven by increased container movement and higher shipments of iron ore and coal, which are necessary to support India’s rapidly expanding economy. The company reported that it had handled a total of 32.3 million tonnes of cargo in April, which represents a 12.8% increase compared to the same period last year. This increase was driven by a 13.6% increase in container volume and a 9% increase in dry cargo volumes, including iron ore, non-coking coal, and coastal coal.
