3 Adani Group stocks hit 5% upper circuit; Adani Enterprises jumps 4%

Adani Ports said the purpose of the $130 million tender offer purchase is to partly prepay the company's near-term debt maturities and to convey the comfortable liquidity position of the company.

Shares of Adani Group companies were in focus with three stocks, Adani Transmission (Rs 1,013.55), Adani Total Gas (Rs 935.35) and Adani Green Energy (Rs 930.75) locked at the 5 per cent upper circuit on the BSE on Tuesday at 10:13 AM; in an otherwise subdued market.

Adani Enterprises, the group's flagship company, Adani Power, Adani Wilmar, New Delhi Television (NDTV), ACC, Ambuja Cements and Adani Ports and Special Economic Zone (APSEZ) were up in the range of 1 per cent to 4 per cent. In comparison, the S&P BSE Sensex was up 0.05 per cent at 60,088.

APSEZ on Monday said it commenced a tender offer to purchase for cash up to $130 million in aggregate principal amount of the outstanding 3.375 per cent Senior Notes due 2024, ahead of scheduled deadlines.

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 $520 million notes to remain outstanding, APSEZ said.

The company further said, post this tender offer the company intends to offer to purchase for cash approximately $130 million of the outstanding notes in each of the next four quarters. The company may choose to either accelerate or defer this plan subject to 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, it added.

APSEZ said the company intends to fund the notes accepted for purchase in the tender offer from its cash reserves.

Meanwhile, Adani Group is expected to report a 20 per cent rise in its earnings before interest, tax, depreciation, and amortisation (Ebitda) at Rs 61,200 crore for the year that ended in March 2023 (2022-23, or FY23), according to a note submitted by the group to lenders recently.

The group had earned Ebitda of Rs 57,299 crore in the preceding financial year that ended in March 2022 (2021-22). The group’s gross debt was at Rs 2.27 trillion as of March 31, 2023, and has projected to not take on additional debt until it lowers its existing one, the Business Standard reported.

Net debt for 2022-FY23 was projected at Rs 1.95 trillion after it repaid debt worth Rs 23,590 crore the same year, according to a recent note submitted to lenders and regulators on future projections. CLICK HERE FOR FULL REPORT