Why Adani Enterprises, Adani Ports stocks in focus today — explained
Adani stocks in focus: Adani shares were in focus today when stock market opened today. Reason for Adani shares being under scanner was rise in Adani Enterprises share price and Adani Ports shares during early morning deals. Adani Ports shares today opened upside and went on to hit intraday high of ₹666.75 per share on NSE. Likewise, Adani Enterprises share price today opened upside and went on to hit intraday high of ₹1814.90 on NSE. However, both the stocks pared its early morning gains after profit-booking trigger.
According to stock market experts, Adani Ports share price is rising as Adani Ports and Special Economic Zone Ltd has commenced cash tender offer for up to $13 crore. They said that Adani Ports is core business of Adani Enterprises Ltd and hence Adani Enterprises shares also witnessed buying interest among stock market bulls. However, Adani Enterprises share price declined after sell off in other Adani group stocks whereas Adani Ports share also pare its early morning gains.
Speaking on the reason for why Adani Enterprises and Adani Ports shares are in focus today, Ravi Singhal, CEO at GCL Broking said, “Adani Ports shares are rising after the stock market news break that the company has commenced cash tender offer for up to $13 crore principal amount of the outstanding 3.375 per cent senior notes due in 2024.” As the development is a positive trigger for Adani Ports shares, the stock witnessed buying interest in early morning deals.
On why Adani Enterprises stock is in focus today, Ravi Singhal of GCL Broking maintained that Adani Enterprises Ltd is mother concern of rest nine sister concerns of Adani group companies. These sister concerns include Adani Ports as well. As there was positive development at Adani Ports, its positive impact on Adani Enterprises was expected.
Adani Ports cash tender offer details
In latest exchange communication, Adani Ports informed Indian bourses about commencement of cash tender offer citing, “Further to our intimations dated April 19, 2023, April 22, 2024 and April 24, 2023, please find enclosed herewith the press release regarding “Adani Ports and Special Economic Zone Limited Commences Cash Tender Offer for up to US$ 130,000,000 in aggregate principal amount of the outstanding 3.375% Senior Notes due 2024.”
Clarifying on the purpose of this tender offer, Adani Ports said, “The purpose of the Tender Offer is to partly prepay the Company’s near-term debt maturities and to convey the comfortable liquidity position of the Company.. After the successful completion of this Tender Offer, the Company expects US$520,000,000 Notes to remain outstanding (“Outstanding Notes”). Post this Tender Offer the Company intends to offer to purchase for cash approximately US$130,000,000 of the Outstanding Notes in each of the next four quarters. The Company may choose to either accelerate or defer this plan subject its own liquidity position and the market conditions, and further subject to the terms, including the pricing, to be separately announced for each of such tranches.”
The Tender Offer will expire at 5:00 p.m., New York time, on May 22, 2023, unless extended or earlier terminated as described in the Tender Offer Memorandum (such time and date, as they may be revised, the “Expiration Time”).
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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