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    Vikshita Vitthal Gujaran in News

    08-Mar-2023 07:42 AM


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    Adani Group loan repayment: How do promoters raise money through pledging?

    On Tuesday announced that it has repaid share-based financing worth Rs 7,374 crore and will prepay all such remaining loans by the end of March.
    In the case of Ltd, pledges over 36 million shares, representing 4.5 per cent of promoters' holdings, will be released.
    What is share-based financing by pledging?
    Here, the promoters keep a part of their shareholding with the banks as collateral to get loans.
    Despite the shares being pledged, the promoters will continue to hold the stake and maintain their ownership.
    However, pledging may increase the risk of volatility in the company's share price.

    Source - Business Standard