Adani Ports shares rise as US govt-backed DFC plans to fund JV in Sri Lanka

Shares of Adani Ports and Special Economic Zone Ltd (Adani Ports) rose more than 2 per cent after the US government-backed US International Development Finance Corporation (DFC) announced plans to fund its joint venture (JV) in Sri Lanka. The company informed about the same through an exchange filing on Wednesday.

"US International Development Finance Corporation (DFC) has announced that it will be funding Colombo West International Terminal (CWIT) – a consortium of India's largest port operator Adani Ports and SEZ, Sri Lanka's leading enterprise John Keells Holdings (JKH) and the Sri Lanka Ports Authority – to the tune of $553 million," it said in the exchange filing.

Following the announcement, shares of Adani Ports surged more than 2 per cent to Rs 816.35 on Wednesday, commanding a total market capitalization of more than Rs 1.77 lakh crore. The scrip had settled at Rs 797.20 in the previous trading session. The stock has rallied about 110 per cent from its 52-week low at Rs 394.95 hit after Hindenburg's damning report.

DFC, the US government’s development finance institution, partners with the private sector to finance solutions to the most critical challenges facing the developing world. It invests across sectors, including energy, healthcare, infrastructure, agriculture and small business and financial services.

"We welcome the association of the US International Development Finance Corporation in funding the Adani project and we see this as a reaffirmation by the international community of our vision, our capabilities and our governance," said Karan Adani, CEO at Adani Ports.

Earlier this month, Adani Ports informed that its flagship Mundra Port handled 16.1 million metric ton (MMT) of cargo in October 2023, the highest-ever volume by any port in India. a. It is the largest port in the country with 102 MMT of cargo handled on a year-to-date (YTD) basis, a good 9 per cent on a year-on-year (YoY) basis growth.

Mundra crossed 100 MMT cargo landmark in less than 7 months of FY24. With 4.2 million TEUs of container cargo on YTD basis, the port headed towards another benchmark, said the company. It is targeting a 200 MMT milestone in cargo volumes during FY25, it added.

Adani Ports is scheduled to announce its results for the second-quarter on Thursday, November 9, 2023, it said in through an exchange filing with the bourses earlier.

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