Adani Enterprises hits new high on financial closure of Navi Mumbai airport

State Bank of India (SBI) has underwritten the entire debt requirement of Rs 12,770 crore for the NMIA Project

Shares of Adani Enterprises hit a new high of Rs 1,937, up 1 per cent on the BSE in Wednesday's trade, after Adani Group achieved financial closure of Navi Mumbai International Airport project (NMIAL), a subsidiary of the company.  The shares of Adani Enterprises quoted higher for fifth day in a row, gaining 7 per cent during the period, as compared to 1 per cent rise in the S&P BSE Sensex.

"NMIAL has achieved financial closure of the greenfield international airport project at Navi Mumbai, Maharashtra after execution of financial documents with the State Bank of India (SBI). The bank has underwritten the entire debt requirement of Rs 12,770 crore for the NMIA Project," the company said in a press release. READ HERE

The Adani Group hailed the financial closure of NMIA Project as company's commitment to mobilise required resources and complete within set timelines. NMIAL is a special purpose vehicle established for the development, construction, operation and maintenance of the greenfield international airport project at Navi Mumbai on Design, Build, Finance, Operate and Transfer (DBFOT) basis. NMIAL is jointly owned by MIAL, with a shareholding of 74 per cent and 26 per cent by City and Industrial Development Corporation of Maharashtra Limited (CIDCO).

Meanwhile, CARE Ratings has revised and upgraded credit rating of the company’s instruments.

"The revision in the ratings assigned to the principal protected market-linked debenture (MLD) issue, non-convertible debenture (NCD) issue and bank facilities of Adani Enterprises Limited (AEL) takes into consideration the strengthened financial flexibility of the Adani group. The factors are led by established track record of successful incubation of businesses across various verticals, completion of substantial capex in subsidiaries of Adani Enterprises and recovery of passenger traffic in the airport segment during 9MFY22 (refers to the period April 01 to December 31)," said CARE Ratings.

The ratings also factor favourably the recovery in the airport segment of Adani Enterprises during 9MFY22 with the revenues of Rs 1,681 crore and profit before interest lease depreciation and tax (PBILDT) of Rs 657 crore. CARE Ratings expects full recovery in the domestic traffic by June 2022 and international traffic by FY23-end assuming no major impact of COVID-waves further. CLICK HERE FOR FULL DETAILS