Adani Ports board approves issuance of NCDs worth ₹5,250 crore

AHMEDABAD : The Board of Adani Ports and Special Economic Zone Limited on Tuesday, December 12, approved bonds and preference shares sale plan of up to ₹5,250 crore.

The Adani Group entity will issue non-convertible debentures (NCDs) of up to ₹5,000 crore in one or more tranches on private placement basis.

The company will also issue non-cumulative redeemable preference shares of up to ₹250.2 crore in one or more tranches on a private placement basis.

“We wish to inform you that the Board of Directors of the company at its meeting held on December 12, 2023 has given their in-principle approval for issuance of Non-Convertible Debentures for capex/refinancing of existing debt and general corporate purpose for an aggregate amount not exceeding ₹5,000 crore in one or more tranches on private placement basis,” it said.

“Issuance of non-cumulative redeemable preference shares on private placement basis for an aggregate amount not exceeding ₹250.19 crore in one or more tranches on private placement basis,” the company said.

The debentures to be issued will be listed on the bourses. The tenure of the instrument, date of allotment and date of maturity will be determined from time to time at the time of issue, the company said.

Global brokerage Citi has upgraded the target price for Adani Ports on the possibility of a rerating. Citi has a ‘Buy’ rating on the counter, citing attractive valuations and a strong business.

Meanwhile, Kotak has raised Adani Ports Ebitda estimates, citing market share gains on operational efficiencies and cargo diversification at India’s largest private ports operator.

Shares of Adani Ports gained 1.01% to trade at ₹1,042.35 a piece on the NSE during Tuesday’s afternoon deals. The stock has rallied 40% in the last six months.