Adani Ports enters bond market for the first time in 2 years

MUMBAI : As Adani Group companies are seeing a massive boom in shares prices, Adani Ports has decided to enter the bonds market for the first time in two years. Adani Ports and Special Economic Zone entered the bond market and garnered a heavy demand for their issue on the first day itself.

Adani Ports, which is India’s largest private port operator, started accepting bids aggregating to 5 billion rupees ($60.2 million) for two listed bonds, with one maturing in five years and the other in 10 at coupons of 7.80% and 7.90%, respectively.

This decision of the company comes shortly after the Supreme Court’s verdict on the Hindenburg report against Adani Group, where the bench ruled that the company will not undergo any additional investigation apart from SEBI’s ongoing probe.

While Adani Ports received bids of up to ₹10 billion, the firm accepted half of this amount. According to three merchant bankers, the bidding parties included top banks and insurance firms in India.

The higher coupon may have been offered to appease investors, as the group is currently gauging demand, said Venkatakrishnan Srinivasan, founder and managing partner at Rockfort Fincap.

Adani Ports last tapped the bond market in October 2021, raising 10 billion rupees at 6.25% coupon. Trust Investment Advisors was the sole arranger to this issue.

Supreme Court on Adani-Hindenburg saga

The Supreme Court delivered its verdict on the Hindenburg report against Adani Group, ruling that no SIT probe will be ordered in the pending cases against the Gautam Adani-led conglomerate, and the court will not interfere with SEBI’s ongoing investigation.

This verdict led to a major spike in the share prices of almost all Adani group companies, which on an average rose by 18 percent. Further, Gautam Adani reclaimed the title of Asia’s richest man through the surge in share prices, surpassing the net worth of Reliance boss Mukesh Ambani.

Adani Ports, operating 13 ports and terminals in the country, had last week announced its intention to raise up to 50 billion rupees by issuing bonds in the coming months, mainly to refinance its existing debt.

A banker who arranged the bonds issue for the company said that Adani Ports is looking to raise up to ₹10 billion through public issue soon