Adani Ports Shares Jump Nearly 6% as Buyback Offer Starts From September 6
The Adani Ports stock closed the trading session at Rs 369.65, up 5.8% from its previous close of Rs 349.35, after hitting an intra-day high of Rs 375. The stock has lost nearly 8% in the last year.
Adani Ports and Special Economic Zone Ltd shares closed nearly 6% higher on Monday, i.e. 26 August, as the company announced that its buyback offer is set to open from 6 September to 20 September.
The Adani Ports stock closed the trading session at Rs 369.65, up 5.8% from its previous close of Rs 349.35, after hitting an intra-day high of Rs 375. The stock has lost nearly 8% in the last one year.
In June, Adani Ports has proposed to buy back up to 39.2 million fully paid up equity shares of Rs 2 each at a price of Rs 500 per equity share payable in cash for an amount aggregating up to Rs 1,960 crore on a proportionate basis, through the tender offer route.
Adani Ports had said in its annual report for fiscal 2019 that the share buyback will help the company support its loyal shareholders that continue to believe in its vision.
The company on Friday said it has received final comments from the Securities and Exchange Board of India (Sebi) on 23 August 2019 on the draft letter of offer dated 13 June 2019 in relation to the buyback offer.
Adani Ports will now dispatch the letter of offer along with the tender form to eligible shareholders on or before Thursday, i.e. 29 August 2019. The record date for eligible shareholders has been set as 21 June 2019. The last date for settlement of bids on the stock exchanges is on or before 1 October 2019.
Meanwhile, investor sentiment around the Adani Ports stock also got a boost from positive rating by brokerage firm IIFL. The firm has a buy rating on the stock with a target price of Rs 400. IIFL said it liked the company’s approach to expand the capacity by around 50%, scale up logistics services to offer integrated solution, focus on cash flows and return ratios.
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