Adani Ports to raise up to Rs 6,000 crore via NCDs

Adani Ports and Special Economic Zone Ltd has given its in-principle approval for the issuance of Non-Convertible Debentures (NCDs). This decision will allow the company to raise funds for capital expenditure, refinancing existing debt, and general corporate purposes. The Adani Group firm, in a BSE filing, said the total amount for this NCD issuance will not exceed Rs 6,000 crore.

The NCDs will be issued on a private placement basis and may be conducted in one or more tranches. The approval marks a significant financial step for Adani Ports as it aims to strengthen its capital base.

The issuance of NCDs is a common practice for companies seeking to leverage debt securities for funding. By opting for a private placement, Adani Ports seeks to target specific investors who are more likely to invest substantial amounts.

By channelling funds towards capital expenditure, the company aims to enhance its operational capabilities and support long-term growth initiatives.

Shares of Adani Ports settled 0.54 per cent lower at Rs 1,377. At this price, the stock has climbed 12.95 per cent year-to-date (YTD)

Technically, the scrip traded lower than the 5-day and 10-day simple moving averages (SMAs) but higher than the 20-day, 30-, 50-, 100-day and 200-day SMAs. Its 14-day relative strength index (RSI) came at 76.37. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The stock has a price-to-earnings (P/E) ratio of 124.95 against a price-to-book (P/B) value of 10.12. Earnings per share (EPS) stood at 11.02 with a return on equity (RoE) of 8.09. According to Trendlyne data, Adani Ports has a one-year beta of 1.9, indicating high volatility.

Around 1.25 lakh shares changed hands on BSE, lower than the two-week average volume of 1.74 lakh. Turnover on the counter came at Rs 17.37 crore, commanding a market capitalisation (m-cap) of Rs 2,97,451.13 crore.