Adani Ports plans to raise $601 million through non-convertible debentures

Adani Ports fund raising: Adani Ports and Special Economic Zone, India's largest private port operator, has announced its intention to raise up to Rs 5,000 crore through the sale of non-convertible debentures, according to a statement released on Wednesday. The move comes as part of the company's strategic financial decisions to bolster its capital base.

Fundraising details

Adani Ports is set to raise the funds through the issuance of non-convertible debentures, with the specific utilisation of the proceeds left unspecified in the company's statement. The move follows the company's previous fundraising efforts, where it raised $600 million in December through bond issuances, utilising the funds to refinance existing debt.

Leadership reshuffle

Gautam Adani has been re-designated as the executive director from managing director, while his son Karan Adani has been re-designated as managing director from CEO. Former Chief Operating Officer of Nissan Motors, Ashwani Gupta, has been appointed as the CEO, stepping into Karan Adani's former role.

Financial snapshot

As of September 30, 2023, Adani Ports reported cash and cash equivalents of Rs 7,290 crore, with net debt standing at approximately Rs 38,700 crore. The company's financial decisions align with the broader fundraising initiatives of the Adani Group, which aims to spend seven trillion rupees over the next decade on various infrastructure projects.

Market resilience

Adani Group entities faced challenges in 2023 after US short-seller Hindenburg Research alleged improper use of tax havens and stock manipulation. Despite the initial setback, the group has gained support from bankers and investors. India's Supreme Court recently provided relief by stating that the group does not need to face additional investigations beyond the ongoing scrutiny by the market regulator.

Stock performance

Adani Ports shares closed 1.5 per cent higher at Rs 1,095.40 apiece on the NSE on Wednesday, January 3, 2024. The positive market response aligns with the broader performance of Adani Group stocks, indicating investor confidence in the company's financial strategy.