The Adani Ports board has approved the Rs 5,250 crore issuance of NCDs

13 Dec 2023 , 01:27 PM

On Tuesday, December 12, Adani Ports and Special Economic Zone Ltd. declared that it would fund Rs 5,250 crore through the issuance of non-cumulative redeemable preference shares worth Rs 2.5 billion and non-convertible debentures worth Rs 5,250 crore.

The majority of the funds raised would be used to refinance existing debt, according to the firm, which runs 13 ports and terminals around the nation, including Mundra in Gujarat, which handles the majority of the nation’s container traffic.

‘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 Rs 5,000 crore in one or more tranches on private placement basis,’ stated Adani Ports in a regulatory filing with the exchanges.

Additionally, Adani Ports stated, ‘Issuance of non-cumulative redeemable preference shares on private placement basis for an aggregate amount not exceeding Rs 250.19 crore in one or more tranches on private placement basis.’

The bourses will list the debentures that will be issued. The corporation stated that the instrument’s duration, allotment date, and maturity date will be decided at the time of issuance. 

According to news agency Reuters, the Economic Times revealed this week that the corporation is in early talks to purchase the Gopalpur port in Odisha owned by real-estate behemoth Shapoorji Pallonji Group (SP Group) for approximately Rs 11–12 billion ($132–144 million).

The Adani Group’s businesses are beginning to gather finance and intend to invest seven trillion rupees in infrastructure projects over the course of the next ten years. Adani Ports’ stock ended Tuesday’s trading session on the BSE 1.03% higher at Rs 1,042.05 per share.

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