Adani Ports Ventures into Bonds Market Amidst Share Boom
Adani Group companies are currently experiencing significant surges in share prices, prompting Adani Ports and Special Economic Zone to venture into the bonds market after a two-year hiatus. India’s largest private port operator witnessed substantial demand on the very first day of its bond issue.
Accepting bids totaling 5 billion rupees ($60.2 million) for two listed bonds, Adani Ports offered one maturing in five years and the other in ten, featuring coupons of 7.80% and 7.90%, respectively.
This move follows the recent Supreme Court ruling regarding the Hindenburg report against the Adani Group. The court decided against initiating any additional investigations beyond SEBI’s ongoing probe.
Although Adani Ports received bids amounting to ₹10 billion, the company chose to accept half of this sum. Notably, bidding entities included prominent banks and insurance firms in India, as revealed by three merchant bankers.
Venkatakrishnan Srinivasan, founder and managing partner at Rockfort Fincap, suggested that the higher coupon might have been offered to gauge investor interest.
Adani Ports’ previous bond market foray occurred in October 2021 when it raised 10 billion rupees at a 6.25% coupon, arranged solely by Trust Investment Advisors.
Supreme Court’s Verdict on Adani-Hindenburg Saga
The recent Supreme Court verdict on the Hindenburg report has ruled out any SIT probe into pending cases against the Gautam Adani-led conglomerate. Additionally, the court affirmed non-interference with SEBI’s ongoing investigation.
This ruling triggered a substantial surge in share prices across nearly all Adani Group companies, averaging an 18% increase. Consequently, Gautam Adani reclaimed the title of Asia’s richest individual, surpassing the net worth of Reliance chairman Mukesh Ambani.
Adani Ports, managing 13 ports and terminals in India, recently announced plans to raise up to 50 billion rupees through bond issuance, primarily aimed at refinancing existing debts.
A banker involved in orchestrating the bond issue stated that Adani Ports aims to raise up to ₹10 billion through a forthcoming public issue, as reported by Reuters.
This recent market move by Adani Ports reflects their strategic initiative amidst favorable market conditions, leveraging the surge in their conglomerate’s share prices following the Supreme Court ruling. As one of India’s key players in the port and logistics sector, the company continues to navigate financial opportunities to further strengthen its position in the industry.