Adani Ports incorporates aircraft leasing unit; stock rises

Shares of Adani Ports & Special Economic Zone (APSEZ) rose nearly 2% in intraday trade on Wednesday after the country’s largest integrated ports and logistics company incorporated a wholly-owned aircraft leasing unit, Udanvat Leasing IFSC Ltd. The company, having an authorised and paid-up share capital of ₹2.5 crore, has been established with the objective of carrying out the business activity of owning and leasing aircraft.

Boosted by the development, Adani Ports shares gained as much as 1.6% to hit an intraday high of ₹783.30, while the market capitalisation climbed to ₹1.67 lakh crore. The Adani Group stock opened marginally higher at ₹771.25 against the previous closing price of ₹771.10 on the BSE.  

At the time of reporting, APSEZ shares were up by 0.23% at ₹772.90, while the market capitalisation stood at ₹1.67 lakh crore.

At the current level, shares of Adani Ports trade nearly 16% lower than its 52-week high of ₹916 touched on November 16, 2022. The large-cap stock hit its 52-week low of ₹394.95 on February 3, 2023. The stock has fallen 3.5% in the last one year, while it lost 6% in the calendar year 2023. In the past six months, the counter surged 15%, whereas it shed 6.5% in a month.

APSEZ incorporated its wholly-owned subsidiary company “Udanvat Leasing IFSC Limited” on October 23, 2023, with an authorised and paid-up share capital of ₹2.5 crore.

As per the company, Udanvat will carry out business of owning and leasing of aircraft. It has been incorporated in GIFT city, Gandhinagar, Gujarat, and registered with Registrar of Companies, Gujarat at Ahmedabad on October 23, 2023.

Last month, Ambuja Cements incorporated three wholly-owned subsidiary companies to support the leasing of aircraft as well as to manufacture cement, RMX, and allied products. The names of the companies are Lotis IFSC Private Limited, Ambuja Concrete North Private Limited, and Ambuja Concrete West Private Limited. 

Lotis IFSC Private Limited was formed with an authorised capital of ₹1.7 crore, comprising 17,00,000 equity shares of ₹10 each. Located in GIFT City, Gandhinagar, Gujarat, the company will carry on the business of owning and leasing of aircraft.

Meanwhile, Ambuja Concrete North Private Limited and Ambuja Concrete West Private Limited were incorporated with an authorised capital of ₹1 lakh each, comprising 10,000 equity share of ₹10. Both the Gujarat-based companies will carry on the business of manufacturing and dealing in cement, RMX and allied products and by-products.

Earlier this month, Adani Ports informed exchanges that it completed the purchase of senior notes worth $195 million due in 2024, as part of its program to prepay short-term maturing debt and reduce its liabilities. The senior notes, having a face value of $1,000 and coupon of 3.375%, were bought back at $975 each.

“The company paid a total of $191.53 million, comprised of the early tender offer consideration in the amount of $975 per $1,000 principal amount, and accrued interest, of $7.40 per $1,000, of US$194.96 in aggregate principal amount of the notes,” it said in a BSE filing on October 14.

The aggregate principal amount of notes that remained outstanding following the cancellation was $325 million.

In May this year, the company had purchased $130 million worth of the notes and indicated buying back about a fifth of the principal amount in each of the next four quarters, amounting to $650 million.

The prepayment programme was conducted to boost investors’ confidence in the Adani group companies after an adverse report by the U.S.-based short-seller Hindenburg Research. The report, which came out on January 24, 2023, triggered sell-off in group shares, with all ten listed entities hitting their respective 52-week lows, resulting in a huge market loss for the conglomerate.

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