Adani Ports incorporates its fully-owned aircraft leasing subsidiary

25 Oct 2023 , 01:53 PM

According to Adani Ports’ regulatory filing, Udanvat was incorporated in Gandhinagar’s Gujarat International Finance Tec-City (GIFT) city but has not yet started operating. Companies who start operating out of GIFT City’s International Financial Services Centre (IFSC) are eligible for a number of exemptions and advantages. 

On October 25, Adani Ports shares slightly increased, two days after the business incorporated Udanvat Leasing IFSC Ltd. as a wholly-owned aircraft leasing firm. The firm, which will have a Rs 2.5 crore authorized and paid-up share capital, has been formed with the intention of doing business activities related to purchasing and leasing airplanes.

Adani Ports shares were down 0.4% from the previous closing price at 12:52 pm, trading at Rs 782.35 on the National Stock Exchange.

Shares of Adani Ports have increased by almost 15% during the past six months. On a year-to-date (YTD) basis, the Adani group company stock is still down 5%. For a variety of factors, including cash-flow considerations, leasing an aircraft instead of purchasing one altogether may be an option. A lease essentially includes moving the aircraft without moving ownership. While giving the lessee custody of the aircraft, the aircraft’s owner, known as the lessor, retains legal ownership.

Before the Adani Group, Tata Group-owned Air India stated in September that an aircraft leasing facility would be established at IFSC Gift City. IndiGo, a low-cost airline, also intends to open a store in IFSC Gift City.

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