Hours after reports about Adani Group securing a $3 billion loan from an unnamed sovereign fund, the port to power conglomerate has issued a clarification denying the claims. The reports had claimed that the loan could also be extended to $5 billion, as Adani is carrying out a roadshow to reassure investors. The firm’s CFO Jugshinder Singh had earlier clarified that the firm isn’t planning to refinance loans or infuse more capital.
Speculation had been rife about gulf-based sovereign funds including major Adani investor IHC of Abu Dhabi, as well as Abu Dhabi’s investment authority and the Emirati state-owned Mubadala, being behind the loan. But as of now, the Adani Group already having a debt of $41.1 billion, has rejected reports about an additional loan.
Over the past month, Adani has lost more than $140 billion in market cap, and has been prepaying loans picked up against shares to address debt concerns. The firm which faces allegations of borrowing money by pledging inflated stocks, has been scrambling to win back investor confidence, as its founder Gautam Adani has tumbled out of the top 30 on the rich list.
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