In fiscal year 2024, the Adani Group freed approximately Rs 26,500 crore worth of pledged shares across its five listed companies, marking the fourth consecutive year of such releases. This trend is attributed to enhanced cash earnings, following similar releases of over Rs 15,000 crore each in FY23 and FY22, and Rs 1.27 lakh crore in FY21.
Key Releases in FY24:
Adani Power witnessed the largest release of promoter-pledged shares, followed by Adani Ports & SEZ and Adani Green Energy Ltd. Adani Power reduced its pledged shares from 72.72 crore to 44.56 crore, releasing around 28.16 crore shares valued at Rs 15,000 crore. Similarly, Adani Ports & SEZ and Adani Green Energy Ltd. also saw significant reductions in pledged shares.
Other group companies like Adani Energy Solutions and Adani Enterprises also witnessed the release of pledged shares, amounting to approximately Rs 913 crore and Rs 1,402 crore, respectively.
Positive Developments and Outlook:
The substantial reduction in pledged shares over the past few years is viewed positively as it alleviates market concerns around funding. Analysts anticipate that the funds released from pledged shares could be utilized to reduce debt incurred for recent acquisitions such as ACC and Ambuja. With funding requirements addressed and past issues resolved, the Adani Group’s need for funds is expected to diminish.
Legal and Regulatory Update:
In January, India’s Supreme Court ruled that the Adani Group would not face further investigations beyond Sebi’s ongoing scrutiny, providing relief amidst allegations by a US short-seller. The court’s decision suggested no heightened regulatory risk for Adani beyond Sebi’s investigation. Additionally, the court opted against altering disclosure rules for offshore funds, despite allegations raised by Hindenburg Research.
