Is Adani Wilmar debt free? How much debt does Adani Wilmar have?

In order to secure loans, Adani Companies pledged further shares of the conglomerate’s port unit on Tuesday. However, given the decline in the stock price following the cancellation of the flagship Adani Enterprises’ follow-on public offer (FPO), additional shares may need to be pledged.

According to a stock market filing, Emerging Market Investment and Flourishing Trade and Investment committed a 2.69 percent share in the Adani Ports and Special Economic Zone to Catalyst Trusteeship, which served as a security trustee for the lenders.

The entities have now pledged a total of 7.79% of Adani Ports. Another report revealed that 0.56 percent of the company’s shares were pledged by Flourishing Trade and Investment.

Since Hindenburg Research’s research on January 24 claiming inappropriate use of offshore tax havens and raising concerns about the company’s massive debt, shares of Adani Ports have been falling precipitously. The rout cost seven listed group firms $65 billion in losses.

According to stock exchange records, around 17% of the promoters’ Adani Ports ownership was pledged as of December’s end. Over 65% of the corporation is owned by the promoters.

After the sharp share sell-off, Adani added nearly $300 million worth of shares on Friday to maintain its collateral coverage for a loan given by a number of banks, including Barclays Plc.

Is Adani Wilmar debt free? How much debt does Adani Wilmar have?

Research by US-based Hindenburg Research has put the Adani Group in the spotlight. The group has a gross aggregate debt of $30 billion, of which $4 billion is in cash.

It has a $26 billion net debt (net of cash). According to the company’s CFO, Jugeshinder Singh, the EBITDA at the portfolio level is $8 billion compared to the $26 billion, or three times the debt to EBITDA at the group level.

Its sanctioned debt exposure to the domestic banking system is at $9 billion.

The group has a combined gross debt of Rs 2.1 lakh crore, according to CLSA, and if inter-group lending were excluded, the debt would be Rs 1.9 lakh crore.