($1 = 82.6390 Indian rupees) (Reporting by Bhakti Tambe; Editing by Savio D'Souza)
bhakti.rajendratambe.thomsonreuters.com@reuters.net Twiter: )) By Bhakti Tambe
MUMBAI, Feb 14 (Reuters) - Two large companies within
India's embattled Adani Group are likely to repay their
short-term commercial paper (CP) debt as they come due over the
next few months, instead of rolling them over as is normal, two
merchant bankers and a company official directly familiar with
the matter said.
The two group companies have about 50 billion rupees ($605
million) worth of CP due to mature through March, data shows,
while exchange data shows the flagship Adani Enterprises Ltd has redeemed a total of 2.5 billion rupees of CP since
Jan. 25.
That is a day after U.S. short-seller Hindenburg Research
accused the group of improper use of offshore tax havens and
stock manipulation – allegations the group has denied – that
sparked about a $120 billion loss in the group's market value on
concerns including about its ability to refinance debt.
Adani Enterprises and Adani Ports and Special Economic Zone
Ltd regularly raise funds by issuing CPs – short-term
debt instruments issued to meet working capital requirements.
"We will repay the CPs as and when they mature and are
currently not looking to tap the short-term debt market," an
official with one of the companies said on condition of
anonymity as they are not authorised to speak to the media.
The official said payments are being made as the securities
mature and the company has not got any requests for early
redemptions.
"All payments are being made as per schedule," an Adani
group spokesperson said in an e-mail, but did not respond to
queries on whether investors are seeking early redemption.
Adani Ports has CPs worth 35 billion rupees due to mature
through end March, data from information service provider Prime
Database showed.
Adani Enterprises has CP worth close to 15 billion rupees
due to mature over February-March and more than 2 billion rupees
worth due for redemption from April through January 2024, the
data showed.
The Adani Group is unlikely to roll over this debt as it
comes due, two bankers said on condition of anonymity as they
are not permitted to speak to the media.
"Market sentiment is such that people will be cautious to
immediately roll over CPs, and would prefer to cash out. So, we
may see them (Adani Group) staying away from the market for some
time," said one banker, who regularly arranges debt issuances
for the group.
A second banker, who advises the conglomerate on local
borrowings, added the group has not reached out to its bankers
asking for a rollover.
"The Adani group generally gets in touch with bankers some
days prior to the maturing CPs but has stopped any sort of
intimation, hinting that they may look to repay the existing CP
holders," this person said.
Apart from short-term borrowings, Adani Enterprises has not
moved forward with plans to launch its debut retail bond issue
of up to 10 billion rupees, while Adani Green Energy Ltd has also stayed put on a planned 1.5-billion rupee,
10-year bond offering, according to bankers, including the two
mentioned earlier.
"There's been no communication from the companies on
previously proposed bond issuances," said a merchant banker with
a brokerage firm and directly involved in the arrangement.
The Adani Group spokesperson denied media reports that these
bond issues have been scrapped, saying this is "speculation" and
"not true" in a reply to Reuters' mail.
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