• By Vaamanaa Sethi
  • Wed, 27 Sep 2023 11:50 AM (IST)
  • Source:JND
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Adani Ports and Special Economic Zone Ltd share price extended gains over 1.32% on BSE to Rs 832 per piece on September 27, Wednesday, after the company launched an offer to prepay $195 million near-term debt maturing in 2024. 

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The company has initiated a cash tender offer to acquire the outstanding 3.37 percent senior notes scheduled to mature in 2024. This marks the port operator's second installment of the bond-purchase program, following the settlement of notes valued at $130 million in May.

Adani Ports and SEZ stock had opened at Rs 824.75 per share in early morning trade on Wednesday against the previous close at Rs 821.35 on Tuesday.

According to reports, Adani Ports stock has surged 31% in the last six months versus 14% of the Sensex benchmark. The stock had touched a 52-week low at Rs 394 per piece on March 3 due to release of the Hindenburg report in January.  

“After the successful completion of this tender offer, the company expects $325 million notes to remain outstanding,” the company said in an exchange filing. 

In May 2023, the company acquired $130 million worth of debt securities and expressed its commitment to buying back approximately 20 percent of the principal amount of notes issued in each of the following four quarters for cash.

Emphasizing its determination, the company stated that, contingent upon market conditions and its liquidity position, it plans to continue its bond-buyback initiative for the subsequent three quarters as well. As before, the port operator intends to finance these repurchases from its cash reserves.

The company also noted that the tender offer is set to expire at 5 pm, New York time, on October 26, 2023, unless it is extended or terminated earlier.

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The company has engaged Barclays Bank, DBS Bank, Emirates NBD Bank, First Abu Dhabi Bank, Mizuho Securities (Singapore), MUFG Securities Asia Singapore Branch, SMBC Nikko Securities (Hong Kong) Limited, and Standard Chartered Bank to serve as dealer managers for the tender offer.