The promoters of three Adani group companies have cumulatively pledged around 1.48 crore shares in these firms — with a current market value of Rs 1,026 crore — to backstop an existing loan extended to Adani Enterprises Ltd (AEL), the group flagship.
In a regulatory filing on Friday, SBICap Trustee Company said Adani Ports and Special Economic Zone (APSEZ) had pledged 75 lakh shares accounting for 0.35 per cent of its equity. This would take the total pledge to 2,15,11,000 shares, or 1 per cent of its equity.
Another 13 lakh shares of Adani Transmission Ltd (ATL) — amounting to 0.11 per cent of its equity – was also pledged. After this, the total number of encumbered shares in ATL works out to 62,17,500 shares, or 0.55 per cent of its equity.
Similarly, the promoters pledged 60 lakh shares, or 0.38 per cent, of Adani Green Energy shares, taking the total pledge to 1.06 per cent or 1.68 crore shares.
SBICap Trustee said it had received the pledges in its capacity as security trustee of the lenders of Adani Enterprises.
A spokesperson for State Bank of India (SBI) clarified that the new share pledge was in the nature of an additional security with regard to the group’s Carmichael project in Australia and that it had not extended any funds against shares.
The Carmichael Project is a thermal coal mine and rail project, which seeks to transport coal from the Galilee Basin in Queensland to countries in Asia, including India.
“As part of the Standby LC (letter of credit) facility of $ 300 million, provided by SBI for Adani group’s Carmichael project in Australia, there is an additional collateral by way of pledge of shares of three group companies.
“The required collateral coverage of 140 per cent is reviewed as at the end of each month and any shortfall on account of MTM (mark-to-market) is required to be topped up.
“There have been a top-up each in the months of June and July 2022 and the third such top-up was done on February 2023 after a review as on January 3, 2023.”
The spokesperson added that being the security trustee, SBI Cap Trustee Company is required to make a regulatory filing with the Securities and Exchange Board of India (Sebi). It has complied with the filing rules every time there has been a change in the number of shares pledged.
“With this latest tranche, the percentage of shares that are pledged towards this project, aggregates to 1.06 per cent, 1.00 per cent and 0.55 per cent of equity shares of Adani Green, Adani Ports, and Adani Transmission, respectively.
“It is clarified that such a share pledge is only as additional collateral security over and above the project assets and no additional finance is extended by SBI against such shares pledged,” the spokesperson added.
‘Regulators looking into Adani issue’
Nirmala Sitharaman during a press conference after the 600th meeting of the central board of the RBI in New Delhi on Saturday. PTI photo
New Delhi: Indian regulators are aware of concerns regarding the Adani group conglomerate, the finance minister said on Saturday, responding to comments by the Supreme Court regarding the need for investor protection.
The regulators were experienced and seized of the matter, Nirmala Sitharaman told reporters after meeting the central bank’s directors in New Delhi. However, she declined to elaborate on what the government planned to tell the Supreme Court.
“I will not disclose here what the government will be saying in the court...India’s regulators are very, very experienced and they are experts in their domain,” she said.
“Regulators are seized of this matter and they are on their toes as always, not just now,” Sitharaman said.
Investor interests need to be protected, the court had said after hearing two cases about large investor losses following a report by a US short seller on the Adani group.
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