Adani Shares Surge On Port's $130-mn Buyback Deal

The share prices of Adani Ports and Adani Enterprise has rallied on account of the Port's buyback announcement of $130 million. The stock price of the Adani Port has surged by 3.70 points (0.56%) to Rs 665.50 per share while Adani Enterprise stock price was up by 0.10% or 1.15 points on intraday basis in the morning trade while writing this copy.

On Monday, Adani Ports and Special Economic Zone (APSEZ) informed that it has started a buyback programme to partly prepay the company's near-term debt maturities and to convey the comfortable liquidity position of the company.

Adani Ports has commenced a cash tender offer for up to $130 million in aggregate principal amount of the outstanding 3.375% senior notes due in 2024.

The company announced through a securities exchange filing that it has floated a tender of up to $130 million in outstanding debts. "After the successful completion of this tender offer, the company expects $52 crore notes to remain outstanding (outstanding notes). Post this tender offer, the company intends to offer to purchase for cash approximately $13 crore of the outstanding notes in each of the next four quarters," it said.

The company also stated that it might accelerate or defer this plan subject to its own liquidity position and the market conditions, as well as further terms such as pricing, which will be separately announced for each of these tranches.

APSEZ has hired Barclays Bank PLC, DBS Bank, Emirates NBD Bank, First Abu Dhabi Bank, MUFG Securities Asia Ltd Singapore Branch, SMBC Nikko Securities and Standard Chartered as dealer managers for the tender offer. Morrow Sodali Ltd is the information and tender agent for the tender offer, the company informed.

The stock price of the Adani Ports SEZ has plunged sharply by 26.86% in one year, but in three years it has surged massively by 144.62%. While the parent, Adani Enterprise stock price has fallen by 24.91% in one year and in three years it has sky-rocketed by 1,181.14%.