Adani Ports announces buyback offer from September 6

With the Indian benchmarks on a buying spree on Monday, several stocks were upbeat for their own reasons. One such stock was Adani Ports and Special Economic Zone (APSEZ). The shares jumped nearly 6 per cent as market participants cheered company’s announcement of buy back of its equity shares from September 6.  

In its press release, the company said that the buyback of equity shares will open on September 6 and will close on September 20. The last date for settlement of bids on the stock exchanges is on or before October 1, 2019.

In June, Adani Ports had announced its plan to buy back up to 39.2 million equity shares, representing 1.89 per cent stake, at Rs. 500 per share, each payable in cash for an amount aggregating up to Rs. 1,960 crore on a proportionate basis, through the tender offer route.

The company had informed that it has received final comments on the draft letter of offer dated June 13, 2019 from the market regulator Securities and Exchange Board of India (SEBI) on August 23, 2019.

In relation to the buy-back, the company will be sending out the letter of offer along with the tender form to eligible shareholders (being the shareholders of the Company as on the record date, June 21, 2019) on or before Thursday, August 29, 2019.

Adani Ports has already commenced most of its large capex investments and majority of these assets have now started yielding healthy margins. The company believes that the share buyback in September will further strengthen relationship with its shareholders.

The stock of Adani Ports closed at Rs. 368.10, up by Rs. 18.70 or 5.35 per cent on the BSE. The stock had opened at Rs. 363.10 and hit an intraday high of Rs. 370.85 and intraday low of Rs. 349.75 during the session.