Adani Ports shares in focus as Adani group firm commences debt buyback

Shares of Adani Ports and Special Economic Zone (Adani Ports) hogged limelight in Monday's trade after a proposed $130 million bond buyback by the Adani group firm kicked off on Monday. The Gautam Adani-led firm is looking to partly prepay near-term debt maturities, allaying investor concerns over liquidity position of the company.

After the successful completion of the tender offer, Adani Ports expects $520,000,000 notes to remain outstanding. Post this tender offer, the Adani group intends to offer to purchase for cash approximately $130,000,000 of the outstanding notes in each of the next four quarters.

"The company may choose to either accelerate or defer this plan subject its own liquidity position and the market conditions, and further subject to the terms, including the pricing, to be separately announced for each of such tranches," Adani Ports said in a BSE filing.

Adani Ports intends to fund the notes accepted for purchase in the tender offer from its cash reserves.

In two filings to stock exchanges earlier today, Adani Ports first said its finance committee in its meeting held on April 24 approved a tender offer to purchase for cash up to US$130,000,000 in aggregate principal amount of the outstanding 3.375 per cent senior notes due 2024.

"Further, the committee approved the tender offer memorandum to be issued to the noteholders of the Notes (“Tender Offer Memorandum”), the dealer manager agreement (“Dealer Manager Agreement”) to be entered into between the company and the dealer managers, and any other documents that may be required to be executed, in relation to the tender offer," Adani Ports said.

In the later release it said “Adani Ports and Special Economic Zone Limited Commences Cash Tender Offer for up to $130,000,000 in aggregate principal amount of the outstanding 3.375% Senior Notes due 2024”.

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