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Market Cheers as Adani Ports' Shares Soar 1.39 Percent on ₹5,000 Crore Fund Approval

Adani Ports Surpasses Guidance with 42% YoY Surge in Volumes

4 January 2024

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Kunal Tyagi

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  • Adani Ports and Special Economic Zone (APSEZ) gains approval for mobilizing funds through a ₹5,000 crore public issuance of non-convertible debentures, with each having a face value of Rs. 1,000.

  • Adani Group gears up for significant capital expenditure, aiming to invest seven trillion rupees in infrastructure projects over the next decade, emphasizing a commitment to growth and development.

  • Despite legal scrutiny related to the Hindenburg issue, APSEZ reports a remarkable 42 percent YoY increase in cargo volumes, exceeding the upper limit of the initially provided guidance range, and undergoes leadership restructuring in its ports and logistics division.

Adani Ports and Special Economic Zone Limited (APSEZ) has taken a significant step towards securing funds for future endeavors. On January 3, the company revealed that its board of directors had approved the mobilization of funds through a public issuance of non-convertible debentures, with a cap of ₹5,000 crore. These debentures, each with a face value of Rs. 1,000, are set to be issued in one or more tranches, as per the company's filing with the exchange houses.


The move comes as part of the broader financial strategy of Adani Group entities, which are gearing up for substantial capital expenditure. The group envisions investing seven trillion rupees in infrastructure projects over the next decade, underlining their commitment to growth and development.


Adani Ports and Special Economic Zone, known for managing a network of 13 ports and terminals across India, aims to handle a cargo volume exceeding 400 metric tonnes in the current fiscal year 2023-24. This surpasses the upper limit of the initially provided guidance range, as revealed in their December 2023 exchange filing. The company reported an impressive 42 percent year-over-year increase in cargo volumes, reaching 35.65 MMT.


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Simultaneously, the company faced legal scrutiny related to the Hindenburg issue. On January 3, the Supreme Court concluded its review, choosing not to initiate a Special Investigation Team (SIT) or CBI probe. This decision follows a series of petitions concerning allegations of stock price manipulation by the Adani Group, with the court's judgment reserved in November.


In a strategic move, the Adani Group's ports and logistics division underwent a leadership restructuring during a recent board meeting. Gautam Adani, the current chairman and managing director, will now serve as the executive chairman, while Karan Adani, the CEO, has been redesignated as the managing director. Ashwani Gupta joins as the new CEO.


On the stock market front, Adani Ports and Special Economic Zone's shares experienced a 1.39 percent increase, closing at ₹1093.50 per share on January 3. The board's approval for raising funds contributed to positive investor sentiment, reflecting the market's confidence in the company's strategic decisions.


As the company positions itself for future growth and navigates legal matters, the financial restructuring and leadership changes signal a dynamic phase for Adani Ports and Special Economic Zone. Investors will be closely watching as the company executes its plans and maintains its upward trajectory in the maritime and logistics sector.


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