Adani Ports shares rise, near Rs 700 level, as Adani group firm looks to pay $130 million debt early

Shares of Adani Ports & SEZ gained over 1 per cent in Monday's trade after the Adani group company on Tuesday said it would pay $130 million of its debt early, after nearly $413 million worth of debt has been tendered for early payment.

Following the development, the stock rose 1.4 per cent to hit a high of Rs 694.65 on BSE and was close to the Rs 700-mark. This was the fourth day of rise for the Adani group stock. The stock has risen 3.74 per cent during the period. The fresh move to pay debt early is expected to boost investor confidence after the market value of seven group companies slumped $114 billion since Hindenburg Research’s scathing report on January 24.

Adani Ports had floated a tender of up to $130 million of 3.375 per cent dollar-denominated bonds last month set to mature in 2024. The company, last month, also said that it stated a buyback programme of certain debt securities to partly prepay near-term debt maturities. It had commenced a cash tender offer for up to $130 million in aggregate principal amount of the outstanding 3.375 per cent senior notes due in 2024.

Adani Ports now said it has floated a tender of up to $130 million in outstanding debts. “After the successful completion of this tender offer, the company expects US$520,000,000 notes to remain outstanding (“outstanding notes”). Post this tender offer the company intends to offer to purchase for cash approximately US$130,000,000 of the outstanding notes in each of the next four quarters,” it had said last month.

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