Adani Ports gains 10% in 2 days after promoter buys shares via open market

Shares of Adani Ports and Special Economic Zone (APSEZ) were up 3 per cent at Rs 714 on the BSE in intra-day on Monday, rising 10 per cent in the past two trading days, after the promoter bought nearly 2 million shares of the company via the open market.

On June 17, 2021, Infinite Trade and Investment Ltd, the promoter group of the company, purchased 1.93 million shares, representing a 0.09 per cent stake, worth Rs 126.81 crore of the company via the open market, according to disclosure made by APSEZ on June 19, 2021. The promoter bought these shares at an average price of Rs 656.88 per share, data shows. Infinite Trade and Investment Ltd had nil holding in the company prior to the acquisition of these shares. CLICK HERE FOR FULL DETAILS

The stock of APSEZ has tanked 26 per cent in the eight trading days between June 7 and June 17 after a media report suggested that the National Securities Depository Ltd (NSDL) has frozen accounts of three foreign funds that own stake in four of Adani group companies. The company as well as NSDL clarified that the Demat accounts of three foreign funds-Albula Investment Fund, Cresta Fund and APMS Investment Fund holding shares in group Companies 'are not frozen'. The stock had hit a record high of Rs 901 on June 9 in intra-day trade on the BSE.

Meanwhile, Fitch Ratings has placed a negative outlook on Gautam Adani-led APSEZ’s, affirming long-term foreign-currency Issuer Default Rating (IDR) at 'BBB-'. Adani Port’s underlying credit profile is assessed at 'BBB' while its rating is capped by India's Country Ceiling of 'BBB-', it said. APSEZ's underlying credit profile reflects its status as the largest commercial port operator in the country, with best-in-class operational efficiency. CLICK HERE FOR FULL REPORT

APSEZ is India’s largest commercial port operator and integrated logistic player in the country. The company in the financial year 2020-21 annual report said that it expects the next wave of growth to come from logistics, with the government setting an objective to reduce the logistics cost to less than 10 per cent of GDP from the current level of 14 per cent.

"Focus on next-generation technology adoption and innovation culture development will cement APSEZ’s position as a market leader. New avenues for the international expansion of ports at selective locations are in an exploratory stage to create value for the organisation and stakeholders.  Towards, strategic capacity addition, we will continue with the development work at Vizhinjam (Kerala) for International Transhipment Container Terminal and liquefied natural gas (LNG) terminal at Dhamra. Development work for an international Container Terminal in Myanmar commenced," the company said in its annual report.



Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel