Tag: Adani Ports and SEZ

Adani Ports shares plunge 4% as Israel goes to war with Hamas

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The fallout from Saturday’s surprise attack on Israel by the Palestinian group Hamas reverberated through markets, sending the Adani Ports and Special Economic Zone stock sliding 4 percent. Adani Ports had acquired Israel’s Haifa port for $1.2 billion in July, 2022.

The Port of Haifa is the second largest port in Israel in terms of shipping containers and the biggest in shipping tourist cruise ships.

“We are closely monitoring the action on ground which is concentrated in South Israel, whereas Haifa port is situated in the North. We remain fully alert and prepared with a business continuity plan that will enable us to respond effectively to any eventuality,” said Adani Ports spokesperson.

Adani Ports in partnership with local chemicals and logistics group Gadot in July last year won an Israel government’s tender to buy the Haifa Port, a major trade hub on Israel’s Mediterranean coast.

The ports-to-power conglomerate has vowed to transform the skyline of this Mediterranean city as part of its decision to invest more in the Jewish nation, including opening an artificial intelligence lab in Tel Aviv.

Adani’s company has no holdings in the West, so its entry into Israel is a signal for increased maritime traffic between Asia and Europe, and the major Asian players’ need for a hub in the Mediterranean.

“The acquisition of the Haifa port also comes with a significant amount of real estate. And I promise you that in the years to come we will transform the skyline we see around us,” said Adani, the founder and chairman of the group.

“The Haifa of tomorrow will look very different from the Haifa that you see today. With your support – we will deliver on this commitment and do our part to transform this city,” he had said.

The overall contribution of Haifa in APSEZ’s numbers stood at 3 percent of the total cargo volume. “For the current fiscal, we have guided for Haifa Cargo volumes range of 10-12 MMT and APSEZ’s total cargo volume guidance of 370-390 MMT,” the group said.

In the initial six months of April-September 2023, APSEZ’s total cargo volume was 203 MMT, of which the Haifa share is 6 MMT.

Adani Ports stock performance

Having plunged to as low as Rs 462.45 in February after Hindenburg’s allegations, the stock has recovered 73 percent. At 11:05 am on Monday (October 9), the scrip was trading 3.64 percent lower at Rs 800.50 apiece.

The Hindenburg Research report, published late January, alleged accounting fraud, stock price manipulation and improper use of tax havens by the Adani group companies, triggering a $150 billion rout in the group market capitalisation earlier in 2023.

The group maintained that the report by the US-based short seller was a “deliberate and malicious attempt” aimed at damaging the reputation of the group and generating short-term profit by driving down Adani group stocks.

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Adani Ports shares rise on bid to buy back up to $195 million of 2024 bond

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Adani Ports and Special Economic Zone (SEZ) rose 1.33 percent to hit a day’s high of Rs 833 apiece on the NSE in Wednesday’s trade after the company commenced cash tender offer for up to $195 million to partly prepay its near-term debt maturities.

Adani Ports had started a buyback programme of some debt securities in April to prepay part of its near-term loans due in 2024.

The private port operator has started a tender offer to buy the outstanding 3.375 percent senior notes due in 2024 for up to $195 million in cash, billionaire Gautam Adani-led company said in a regulatory filing.

Bond buybacks allow companies to repurchase debt through tender offers to bondholders, enabling them to retire some or all of the securities ahead of their due date.

The purpose of the tender offer is to partly prepay the company’s near-term debt maturities. Following the successful completion of this tender offer, the company expects $325 million notes to remain outstanding, it said.

This is the Adani Ports’ second tranche of the bond-purchase programme after it settled notes worth $130 million in May this year.

The company has said it plans to keep buying the outstanding notes over the next three quarters for cash. The ports and logistics company intends to fund the buyback from its cash reserves.

The tender offer will expire at 5 pm, New York time, on October 26, 2023, unless extended or earlier terminated, the company said.

The company has engaged Barclays Bank, DBS Bank, Emirates NBD Bank, First Abu Dhabi Bank, Mizuho Securities (Singapore), MUFG Securities Asia Singapore Branch, SMBC Nikko Securities (Hong Kong) Limited, and Standard Chartered Bank to serve as dealer managers for the tender offer.

The announcement takes place just as the ports-to-power conglomerate seeks to refinance a $3.5 billion worth of debt taken out for an acquisition,   having suffered a blow earlier this year. A report by US-based short seller Hindenburg Research had accused the group of improper use of offshore tax havens and stock manipulation. The conglomerate backed by Adani denied all allegations.

The Adani-led group’s seven-listed stocks have lost over $100 billion in market value since the explosive report.

Having plunged as low as 85.8 cents on the dollar in February after Hindenburg’s allegations, the 2024 notes have recovered and were trading at 96.5 cents on the dollar on Wednesday, according to a Bloomberg report.

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Adani Enterprises share price: Step-down subsidiary to market green hydrogen in Japan

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Adani Global Pte Ltd., Singapore, a step-down, wholly-owned subsidiary of Adani Enterprises announced a 50-50 Joint Venture with Kowa Holdings Asia Pte Ltd., Singapore on Thursday, September 14.

The subsidiary of Adani Group’s flagship company will utilise the JV for sales and marketing of green ammonia, green hydrogen and its derivatives. These products will be marketed in Japan, Taiwan and Hawaii.

“JV with Kowa for green hydrogen marketing is a natural and strategic extension of Adani Group’s long-standing marketing and trading relationship with Kowa,” the exchange filing said.

Adani New Industries Ltd, the green hydrogen platform of the Adani Group is currently implementing a 1 million metric tonnes per annum (MMTPA) green hydrogen project in phases in Gujarat. The initial phase is likely to start production by the financial year 2027.

The New Industries unit plans on increasing the capacity to up to 3 MMTPA of green hydrogen in the next ten years, with an investment of $50 billion.

Additionally, Adani Wind, the wind energy solutions division of Adani New Industries received a certificate for India’s largest wind turbine generator. The 5.2 MW turbine generator has received type certification from WindGuard GmbH, the company said in a press release.

Adani Group stocks, particularly Enterprises and Ports have been in focus after promoter entities increased stake in both these companies over the last few weeks.

Shares of Adani Enterprises are trading 0.3 percent higher at Rs 2,526. Here’s a look at how the other Adani Group stocks are trading:

You can read more about the Adani-Hindenburg case here:

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Retail investors raise stakes in five Adani companies during the June quarter, cut in other five

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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After raising stakes in all Adani companies during the March quarter, the retail investors have booked some profit in five of the group stocks. Additionally, they have continued to hike stakes in the remaining five entities, data sourced from exchanges showed.

Among the companies that witnessed an increase in retail investment during the June quarter include NDTV, Adani Total Gas, Adani Transmission, Adani Wilmar and ACC. While the individual holdings in NDTV have increased by 4.31 percentage points (ppts) to 21.85 percent, Adani Total Gas saw its retail holdings increase by 2.06 ppts to 4.5 percent.

The average retail holding in Adani group companies has increased to close to seven percent from a little over five percent at the end of 2022. The combined market capitalisation of all Adani shares surged 10.4 percent in three months to Rs 10.1 lakh crore at the end of June 2023.

Interestingly, NDTV, where the retail investors have more than doubled their stake since September last year, has seen its valuation plummeting since then. The stock of NDTV has corrected as much as 58 percent from its September highs. Similarly, the holding by individual investors in Adani Total Gas rose to 4.5 percent from 1.6 percent at the end of December. The stock of Adani Total Gas is down by 83 percent between January and now.

At the end of the June quarter, the value of retail investment in all ten Adani stocks stood at about Rs 43,000 crore, which is almost equal to the value of the Life Insurance Corporation of India (LIC) portfolio. LIC, the largest institutional investor in the country, neither bought nor sold any Adani stocks during the first quarter of FY24.

The data further shows that the promoter entity has cumulatively cut its stake in four group companies by four percent since the beginning of the year. While the promoter holding in Adani Transmission has come off by 5.92 percent since January, Adani Enterprises and Adani Green Energy saw about five percent dilution by the promoter entity during the same period. The promoter holding in Adani Ports & SEZ has reduced to 62.9 percent from 65.1 percent at the end of December 2022.

Also Read:Adani AGM: Gautam Adani addresses Hindenburg allegations head-on; group stocks rally

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Adani Ports registers record cargo volume of over 100 MMT in June quarter – All three business segments grow

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Adani Ports and Special Economic Zone Ltd. (APSEZ) on Monday announced that the company handled its highest-ever quarterly cargo volume of 101.4 million metric tonnes (MMT) in the three months ended June 2023, showing a growth of 11.5 percent on a year-on-year basis.

The growth was witnessed across most ports and all three broad cargo segments – container (19 percent), liquids and gas (8 percent), and dry bulk (7 percent), the Adani Group company said in a business update to the stock exchanges.

In the month of June alone, Adani Ports handled 32.8 MMT of cargo including 1 MMT at its Haifa Port.

The Adani Group said that logistics volume also continues to record a significant jump with year-to-date rail volumes of 1,31,420 TEUs, a growth of 18 percent on a year-on-year basis, and GPWIS volumes stood at 4.35 MMT, a surge of 40 percent on a year-on-year basis.

Adani Ports has six strategically located ports and terminals on the west coast — Mundra, Dahej, Tuna, and Hazira in Gujarat, Mormugao in Goa, and Dighi in Maharashtra. The company operates five ports and terminals on the East coast of India – Dhamra in Odisha, Gangavaram, and Krishnapatnam in Andhra Pradesh; and Kattupalli and Ennore in Tamilnadu, representing 24 percent of India’s total port volumes.

The company in the quarter ended March 31, 2023, reported a 5.1 percent year-on-year increase in consolidated net profit at Rs 1,158.9 crore. Its total revenue stood at Rs 5,797 crore, up 40 percent from last year.

Shares of Adani Ports are trading 0.4 percent lower at Rs 736.50.

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Adani Ports shares rise after NCLT nod on Gangavaram Port acquisition

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Adani Group’s ports and logistics company Adani Ports and Special Economic Zone (APSEZ) rose 1.5 percent on Tuesday after the company received approvals from NCLT Ahmedabad and NCLT Hyderabad for acquiring the remaining 58.1 percent stake in Gangavaram Port Limited (GPL).

GPL will now become a 100 percent subsidiary of APSEZ. The stock of the company was trading 0.6 percent higher at Rs 812.9 on BSE at 10:19 am.

“Gangavaram Port has excellent rail and road network connectivity and is the business gateway to the hinterland spread over eight states. The recent addition of a container handling terminal will enable us to accelerate our growth of cargo volumes,” said Karan Adani, CEO and Whole-time Director of APSEZ.

The Gangavaram Port is located in the northern part of Andhra Pradesh next to Vizag Port and is the third largest non-major port in Andhra Pradesh with a 64 MMT capacity established under a concession from the government of Andhra Pradesh that extends till 2059. The port has a capacity to handle fully laden super cape-size vessels of up to 200,000 DWT.

“The port handles a diverse mix of dry and bulk commodities, including coal, iron ore, fertiliser, limestone, bauxite, sugar, alumina, and steel. Gangavaram Port is the gateway port for a hinterland spread over eight states across eastern, southern and central India,” the company said in its exchange filing.

The acquisition is priced at around Rs 6,200 crore, and the company has already acquired 31.5 percent stake in the port from Warburg Pincus and 10.4 percent from the government of Andhra Pradesh during FY22. It will now acquire of 58.1 percent stake from DVS Raju and family through a share swap arrangement.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Adani Ports maintains annual cargo volume guidance despite ban on rice exports

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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[wealthdesk shortname=”Adani Ports” isinid=”INE742F01042″ bseid=”532921″ nseid=”ADANIPORTS” sector=”Infrastructure – General” exchange=”nse”]

Adani Ports & Special Economic Zone said that it is well aligned to meet its annual cargo volume guidance of 350-360 metric million tonnes (MMT). The company has maintained its guidance despite an extended monsoon and the ban and higher duties on rice exports imposed in early-September.

India’s largest operator of commercial ports reported a 13 percent year-on-year growth in cargo volumes in September to 26.1 MMT.

Last week, the government further extended the last date for the export of broken rice in transit to October 15, after extending it twice previously. It had banned the exports of broken rice on September 8. It also imposed a 20 percent export duty on non-basmati rice, except for parboiled rice to boost domestic supplies due to the fall in area under the paddy crop during the current kharif season.

For the first six months of the current financial year, Adani Ports managed 177.5 MMT of Cargo, which is nearly half of its annual guidance. The first half cargo volumes is a growth of 11 percent over the corresponding period of last year.

Cargo volumes on India’s east coast increased 13 percent from last year, supported by Adani’s recent acquisitions like Krishnapatnam (up 13 percent), and Gangavaram (up 9 percent). Port volumes from Kattupalli and Ennore together grew 51 percent year-on-year. The 10 percent growth in West Coast cargo volumes were supported by Mundra (up 65 percent), and Goa (up 22 percent).

The company has been in the news last month after its unit, HDC Bulk Terminal, signed a concession agreement with Syama Prasad Mookerjee Port in Kolkata for the mechanisation of Berth 2 at Haldia Port. It had emerged as a successful bidder for the project in February this year.

Jefferies had recently raised its price target on the stock to Rs 1,100, raising its earnings estimates by 3-7 percent for the next two years. Citi also expects the company’s strong operating performance to drive a rerating going forward.

Shares of Adani Ports are trading 1.4 percent higher at Rs 831.75. The stock is up 13 percent year-to-date.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

CCI approves Adani Ports and Special Economic Zone’s 10% stake-buy in Gangavaram Port

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Fair trade regulator CCI on Monday approved acquisition of over 10 percent stake in Gangavaram Port Ltd by Adani Ports and Special Economic Zone Ltd. The 10.4 percent equity shareholding would be acquired from the government of Andhra Pradesh, according to a combination notice filed with the regulator.

Adani Ports and Special Economic Zone is present across 11 domestic ports in six maritime states — Gujarat, Goa, Kerala, Andhra Pradesh, Tamil Nadu and Odisha. Gangavaram Port is engaged to own, develop and operate the deep-water port at Gangavaram, Andhra Pradesh, pursuant to a concession agreement on build-own-operate-transfer basis with the state government, the notice added. “Commission approves proposed acquisition of 10.40 percent equity shareholding of Gangavaram Port by Adani Ports and Special Economic Zones Ltd,” as per a tweet by the regulator.

Commission approves proposed acquisition of 10.40% equity shareholding of Gangavaram Port by Adani Ports and Special Economic Zones Ltd pic.twitter.com/Fz2dySvdDw

— CCI (@CCI_India) September 20, 2021

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow