Adani Ports bond buyback offer oversubscribed with bids of $413 million

Investors who tender their bonds on or before the initial tender date will receive the principal amount of $970 per $1,000, plus accrued interest.

The company said that the company will accept additional bonds subject to a proration factor of 34.2649%.

Any bonds not accepted for purchase will remain outstanding and continue to earn interest. The initial settlement date is expected to be May 10, 2023.

“According to the information provided by Morrow Sodali Limited (“Information and Tender Agent”), the information and tender agent for the Tender Offer, an aggregate principal amount of $412,724,000 of the Notes was validly tendered and not validly returned The tender offer as on the initial tender date,” the company said.

Adani Ports had announced buy-back of up to $130 million of the company’s outstanding bonds in an effort to comfort investors and creditors about the group’s liquidity position, reported US-based short-seller Hindenburg Research on 24 Had come under the scanner after a serious report. January.

This was the first-ever buyback of bonds by Adani Ports and assumes significance in the backdrop of widespread concern among investors about the group’s liquidity position following the Hindenburg Research report.

The total debt of the Adani group is around 2.27 trillion as on March 31 and the gross assets were 3.91 trillion.

Market capitalization of Adani Ports 149,438 crores. The stock hit a 52-week high 987.9, and had a 52-week low 394.95. The company is trading up 0.98% 691.9 per share on BSE on Tuesday.

On 18 April, Mint reported that Adani paid $3 billion to repay promoter pledges and bonds in group firms, during the recently ended March quarter. Adani Group has significantly reduced its promoter-group pledge and settle bonds with three domestic mutual funds using $1.88 billion equity funding by GQG Partners and an additional $1 billion from promoter-group funding.