Adani Ports Zooms 3%, here’s why!   

Indian benchmark indices are trading with modest gains in the first half of the trading session on Thursday with Nifty and Sensex up by 0.08% and 0.10%, respectively.   

Talking about the sectoral performance, all the sectors are trading in green barring Nifty Pharma which is down by nearly 1%. The broader markets are seen outperforming the frontline indices as Nifty Midcap and Smallcap index advances by 0.34% and 0.58%, respectively.   

Talking about the outperformance, there is one stock from Adani Group which is outperforming the frontline indices and even the broader markets hands down. The stock is Adani Ports and Logistics.   

On Thursday, the stock opened around level of Rs 694 and made an intra-day low of Rs 692.25 but buying emerged at lower levels and this buying from levels has helped the stock to scale to intra-day highs of Rs 714.

The stock is trading higher by nearly 3% and interestingly, the bulk gains in the stock are seen in the last half an hour of trade. Along with price the volumes have also picked up.   

The total trade volume so far has crossed the 32-lakh mark which is greater than its prior trading session. The stock is currently trading above its 20 and 50-DMA and both the moving averages are trending up. Also, these moving averages are in desired direction i.e. 20 DMA is above the 50-DMA.   

So, what is the reason behind the robust performance of this stock in today’s trading session?   

In a press release the company has stated “Adani Ports and Special Economic Zone Limited (the “Company”) hereby announces the successful early settlement of Notes (as defined herein) tendered pursuant to its previously announced offer to purchase for cash (the “Tender Offer”) up to US$130,000,000 in aggregate principal amount (the “Maximum Acceptance Amount”) of its outstanding 3.375% Senior Notes due 2024 (the “Notes”) from each registered holder (each, a “Holder” and, collectively, the “Holders”), on the terms and subject to the conditions set forth in the tender offer memorandum dated April 24, 2023 (as it may be amended or supplemented from time to time, the “Tender Offer Memorandum”) prepared in connection with the Tender Offer.   

The Company paid a total of US$127,391,875.13, comprised of (i) the Early Tender Offer Consideration in the amount of US$970 per US$1,000 principal amount and (ii) accrued interest, of US$9.9375 per US$1,000, of the Notes validly tendered on or prior to 5:00 P.M., New York City time, on May 8, 2023 (the “Early Tender Date”) and accepted for purchase by the Company on May 9, 2023 (the “Tendered Notes”). The Company has arranged for the Tendered Notes to be cancelled on or around May 10, 2023. The aggregate principal amount of Notes that remains outstanding following the cancellation is US$520,000,000 (the “Outstanding Notes”).   

Since the principal amount of Notes validly tendered and not validly withdrawn on or prior to the Early Tender Date exceeded the Maximum Acceptance Amount, the Company will not accept any Notes tendered after the Early Tender Date.”  

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations.