Adani Ports stock hits all-time high as Warburg Pincus to invest Rs 800 crore

Adani Ports share hit its all-time high today after the firm sold 0.49 percent stake to Windy Lakeside Investment Ltd, an affiliate of private equity firm Warburg Pincus for Rs 800 crore.

Adani Ports stock opened with a gain of 2.38% at Rs 766.40 on BSE today. The share touched an all-time high of Rs 768.4, up 2.65% against previous close of Rs 748.55. Adani Ports share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

Adani Ports share has risen 120% in one year and climbed 55.43%  since the beginning of this year.

In a month, the large cap share has gained 29.21%. Market cap of the firm stood at Rs 1.52 lakh crore.

The Board of Directors of APSEZ took the decision to issue up to 10 million equity shares to Windy Lakeside Investment Ltd (Windy) at a price of Rs 800 each (at a premium of Rs 798 per Equity Share), for an aggregate consideration of up to Rs 800 crore, APSEZ said in the notice issued to the exchanges. The board approved the issue of the notice convening an extraordinary general meeting (EGM) of the shareholders to be held on April 6.

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Brokerages termed the development positive for Adani Ports stock. 

CITI gave a Buy call on the Adani Group stock with a target price of Rs 935.  It said the preferential Issue at Rs 800 per share cements valuation for the firm.

In addition, the deal reduces effective cash outgo on Gangavaram port acquisition by Rs 800 crore (i.e. to Rs 1150 crore). Benchmark valuation will have flexibility to raise capital for future acquisitions, it added.

Morgan Stanley gave a target price of Rs 730. Although the deal involves only 0.5% stake, more importantly, it's at a premium, the brokerage said. Transaction also has to be seen in context of Gangavaram port acquisition from same PE and highlights this investor's confidence in APSEZ.

On March 4 this year, Adani Ports and Special Economic Zone  share rose nearly 3% after the  firm said it acquired 31.5% stake in Gangavaram Port Limited (GPL) which was earlier held by Windy Lakeside Investment Limited (an affiliate of Warburg Pincus). The deal was valued at Rs 1,954 crore subject to certain regulatory approvals.

Adani Ports share rises 3% after firm buys stake in Gangavaram Port for Rs 1,954 crore