Adani Ports Board Approves Issuance of NCDs Worth.

Image credit-Adani

Adani Ports and Special Economic Zone Ltd made a significant financial announcement on December 12, revealing plans to raise a substantial amount of capital. The company, known for its extensive operations with 13 ports and terminals across India, including the prominent Mundra port in Gujarat, disclosed its intention to raise ₹5,250 crore through the issuance of non-convertible debentures (NCDs) and an additional ₹2.5 billion through non-cumulative redeemable preference shares.

This strategic move was unveiled as part of the company's broader financial strategy, and a majority of the funds generated are earmarked for the refinancing of existing debt. The Board of Directors of Adani Ports gave their in-principle approval for the issuance of NCDs for capital expenditure, refinancing existing debt, and general corporate purposes. The aggregate amount targeted for this purpose is set at ₹5,000 crore and will be executed in one or more tranches on a private placement basis.

In addition to NCDs, the company plans to issue non-cumulative redeemable preference shares on a private placement basis, aiming to generate an aggregate amount not exceeding ₹250.19 crore. This move further highlights Adani Ports' proactive financial approach to meet its corporate objectives and strategic initiatives.

The announcement clarified that the debentures to be issued will be listed on the stock exchanges, providing transparency and accessibility to investors. The specific details such as the tenure of the instrument, date of allotment, and date of maturity will be determined on a case-by-case basis at the time of issue, allowing flexibility to adapt to market conditions.

Concurrently, recent reports surfaced suggesting that Adani Ports is in preliminary discussions to acquire Gopalpur port in Odisha from the Shapoorji Pallonji Group's (SP Group) real-estate conglomerate. This potential acquisition is estimated to be valued at ₹11-12 billion ($132-$144 million), as reported by news agency Reuters. If materialized, this move would add another significant asset to Adani Ports' expansive portfolio, aligning with the company's strategic growth objectives.

Adani Group, as a whole, has embarked on an ambitious plan to raise funds for capital expenditure, aiming to invest seven trillion rupees over the next decade in various infrastructure projects. This financial commitment underscores the group's dedication to fostering economic development and contributing to the nation's infrastructure landscape.

As the news circulated, the market responded positively, with Adani Ports' shares settling 1.03% higher at ₹1,042.05 apiece on the Bombay Stock Exchange (BSE). The financial market's reception to Adani Ports' strategic financial decisions further emphasizes the company's prominent position and investor confidence in its growth trajectory.

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