Adani Ports incorporates Udanvat Leasing IFSC Ltd, to hold 100% stake

Adani Ports and Special Economic Zone Ltd (APSEZL) has recently incorporated Udanvat Leasing IFSC Ltd, which is a wholly-owned aircraft leasing unit with an authorised and paid-up share capital of Rs 2.5 crore.

Udanvat has been incorporated in the Gautam Adani-controlled company with the objective of owning and leasing of aircraft. Adani Ports will hold a 100 per cent stake in the firm. The cost of acquisition is Rs 2.50 crore. The company will divid the amount into 25,00,000 equity shares of Rs 10 each.

In a regulatory filing by Adani Ports on October 23, the company said that Udanvat Leasing IFSC has been incorporated in Gujarat International Finance Tec-City (GIFT) city and is yet to commence its operations.

"Udanvat Leasing IFSC Ltd has been incorporated with an authorised and paid-up share capital of Rs 2,50,00,000 divided into 25,00,000 equity shares of Rs 10 each," the company said in the regulatory filing issued on Monday.

The Adani Group has been trying to venture into the aviation industry of late and had also incorporated Adani Aviation Fuels Limited in September 2022. Adani Aviation Fuels was set up to be involved with sourcing, transporting, supplying and trading of aviation-related fuels.

Last month, Tata Group-owned Air India had also announced setting up an aircraft leasing unit at IFSC (International Financial Services Centre) Gift City while budget carrier IndiGo also plans to establish a shop at IFSC Gift City.

Aircraft leasing firms that commence operations from the International Financial Services Centre (IFSC) in GIFT City are entitled to certain exemptions and benefits. Leasing an aircraft instead of buying it is a preferred alternative for various reasons as factors like cash flow and that ownership are taken into account. A lease involves transferring the aircraft without transferring ownership. The lessers, who are the owners of the aircraft, maintain legal ownership while granting possession to the lessee.

In terms of its own business, recently, Adani Ports CEO Subrata Tripathi said Adani Ports will be handling more than 400 million tonnes per annum (MTPA) of cargo in the fiscal year 2024, in line with its ambitious target of reaching 500 MTPA by 2025.

In 2022, Adani Ports handled 350 MTPA of cargo, leveraging its substantial capacity of nearly 600 MTPA. Tripathi said Adani Ports has the potential to reach the 400 MTPA milestone in FY24, aligning seamlessly with the overarching goal of attaining 500 MTPA by 2025.

At 12.40 PM, Adani Ports shares were trading at Rs 769.05 on BSE, down by 0.27 per cent.

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