In a significant move, the Adani Group has announced the release of Rs 26,500 crore worth of pledged shares in fiscal year 2024 (FY24) across its five listed companies. This marks the fourth consecutive year of such releases, indicating a continued trend in the group’s financial strategy.
Reasons Behind the Release
Analysts attribute this trend to the improved cash earnings of the Adani Group, following similar releases of over Rs 15,000 crore each in FY23 and FY22, and a substantial release of Rs 1.27 lakh crore in FY21. The improved cash flows have enabled the group to release pledged shares, signifying a positive financial trajectory.
Release Across Listed Companies
The release of pledged shares was witnessed across various companies within the Adani Group. Adani Power saw the largest release of promoter-pledged shares in FY24, followed by Adani Ports & SEZ and Adani Green Energy Ltd.
Adani Power’s Pledged Shares Release
In March 2023, Adani Power had pledged 72.72 crore promoter shares. However, this number reduced significantly to 44.56 crore by March 2024, indicating a release of around 28.16 crore shares valued at Rs 15,000 crore. This substantial release underscores the group’s commitment to optimizing its financial position.
Adani Ports & SEZ Pledged Shares Reduction
Similarly, Adani Ports & SEZ witnessed a reduction in pledged shares from 6.14 crore in March 2023 to 2.42 crore by March 2024. This release amounts to around 3.72 crore shares valued at Rs 4,989 crore. The reduction in pledged shares reflects the group’s focus on enhancing shareholder value and financial stability.
Analyst Insights
Ambareesh Baliga, an independent market analyst, commented on the release of pledged shares, attributing it to the improved cash flows of the Adani Group. He also noted the positive response from institutions, which have raised their stake in some of the group’s stocks, signaling confidence in the company’s growth prospects.
The Adani Group’s decision to release pledged shares worth Rs 26,500 crore in FY24 reflects its commitment to strengthening its financial position and enhancing shareholder value. With improved cash earnings and positive market sentiment, the group continues to demonstrate resilience and strategic foresight in navigating the evolving business landscape.
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