After a two-year hiatus, Adani Ports has announced its re-entry into the bond market. This move aligns with the recent surge in share prices observed across Adani Group companies.
Launching Bond Bids Amidst Growth
India’s largest private port operator, Adani Ports, is initiating bids for two listed bonds aggregating 5 billion rupees. These bonds have different maturity periods – five and ten years, with coupons at 7.80% and 7.90%, respectively.
Supreme Court Verdict Impact
Following the Supreme Court’s decision regarding the Hindenburg report on Adani Group, which favoured no additional investigations beyond SEBI’s ongoing probe, Adani Ports witnessed a significant upsurge in its share prices.
Strong Demand from Banks and Insurers
Although Adani Ports received bids totalling Rs 10 billion, it accepted only half this amount. Top Indian banks and insurance firms were among the bidders, indicating strong market confidence.
Coupon Rates and Past Performance
Expert views suggest the higher coupon rates could be a tactic to attract investors. This strategy comes as the company last accessed the bond market in October 2021, raising funds at a lower coupon rate.
Adani’s Ascension and Future Plans
The recent developments have boosted Adani Ports’ market position and led Gautam Adani to regain his status as Asia’s richest individual. The company, which operates 13 ports and terminals, plans to issue bonds worth up to 50 billion rupees shortly, primarily for refinancing existing debt.
Next Steps in Bond Issuance
With a successful initial bid, Adani Ports is gearing up for a public issue to raise Rs 10 billion, indicating a strong and strategic financial roadmap for the future.