In this article, we will discuss the Adani Ports and Special Economic Zone Limited Buyback offer, buyback price, Adani Ports buyback size, record date, company financial, buyback necessity and its impact on the company.
|Buyback Type||Tender Offer|
|Opening Date||September 6, 2019|
|Closing Date||September 20, 2019|
|Buyback Offer Amount||Rs. 19,60,00,00,000 /-|
|Buyback No. of Shares||3,92,00,000|
|Face Value||Rs. 2/-|
|Date of Buyback Approval||June 4, 2019|
|Date of Public Announcement||June 6, 2019|
|Buy Back Price||Rs. 500/-|
|Buy Back Premium||27.30%|
Adani Ports and Special Economic Zone Buyback Opening and Closing Date
The starting and closing dates of this buyback are September 6, 2019 to September 20, 2019.
Adani Ports and Special Economic Zone Buyback Cash Offer
The Cash Offer to Buy-back up to 3,92,00,000 (Three Crore Ninety-Two Lakh) fully paid-up equity shares of the Company of face value of Rs. 2 each.
Adani Ports Buyback Record Date
The decided record date is Friday, June 21, 2019.
Adani Ports and Special Economic Zone Buyback Price
At a price of Rs. 500/- (Rupees Five Hundred Only) per Equity Share.
Adani Ports Buyback Size
The Buyback is for an aggregate amount not exceeding Rs. 19,60,00,00,000/- (Rupees Nineteen Crores Sixty Lakhs only)
Adani Ports Buyback Acceptance Ratio
Find profit & profit percentage based on various acceptance rate, The profit is calculated based on 1000 shares.
|Acceptance Ratio||Total Shares Accepted||Buyback Price||Buyback Amount||Profit||Profit%|
Profit is calculated from 29th Aug 2019 share price i.e. Rs.366 per share of Adani Ports and Special Economic Zone Limited.
According to the above table, if a shareowner applies for 1000 shares of Adani Ports and Special Economic Zone Limited & gets 20% acceptance from the company, the owner of this 1000 shares will sell 200 shares @ Rs.500 per share & receive Rs.26800 as profit amount & 7.32% profit percentage on selling these 200 shares back to the company.
Similarly, if the owner gets 60% acceptance of share from the company, the owner will sell 600 shares @ Rs.500 & receive a profit of Rs.80400 @ 21.97% profit percentage.
Adani Ports SEZ Limited Buyback Overview
The Company, part of globally-diversified Adani Group, is a leading port developer and operator and an integrated logistics player. It has expanded its business from operating a single port at Mundra on the west coast of India to being a pan-Indian integrated logistics service provider, operating at ten strategically located ports/terminals along the Indian coastline. The Company has a seamless integration of ports and terminals, industrial land and logistics business.
Ports Business: The Company currently operates nine ports and terminals consisting of 47 berths and two single point moorings to facilitate the handling of dry, liquid and crude oil, containers, ro-ro and project cargo with a total capacity to handle 395 mm tpa of cargo.
Industrial Land: The land bank area of 8,481 hectares offers integrated infrastructure with land in special economic zone, domestic tariff area and free trade and warehousing zones with cluster-based zoning. It has multi-modal connectivity with the sea, air, rail and road linkages with quality social infrastructure facilities, such as housing, education, healthcare and recreation with support system utilities such as power, water and common effluent treatment plant.
Logistics business: The Company operates three logistics park at Patli, Kishangarh and Kilaraipur which provide the Company with a strategic presence in the northern hinterland of India along with category I licensed container rake operator with 30 container rakes.
Company Finances – Adani Ports and Special Economic Zone Limited
The salient features of the financial information of the Company for last three financial years as extracted from the financial statements is provided below:
(Rs in Lakhs)
|For the year|
|Depreciation and Amortization|
|Profit/(Loss) before Tax||3,66,364.00||3,82,918.00||3,29,294.00|
|Provision for Tax|
(including Deferred Tax)
|Profit/(Loss) after Tax||2,63,772.00||2,40,810.00||3,10,061.00|
|Equity share capital||41,419.00||41,419||41,419.00|
|Debt (excluding working capital)||18,78,559.00||19,40,397.00||17,00,978.00|
Adani Ports Buyback Dates
|Date of Board Meeting approving the Buy-back||Tuesday, June 4, 2019|
|Date of Public Announcement for the Buy-back||Thursday, June 6, 2019|
|Date of publication of the Public Announcement||Friday, June 21, 2019|
|Record Date||Friday, June 21, 2019|
|Date of opening of the Buy-back||Friday, September 6, 2019|
|Date of closing of the Buy-back||Friday, September 20, 2019|
|Last date of receipt of the completed Tender Forms and other specified documents||Monday, September 23, 2019|
|Last date of verification of Tender Forms by the Registrar||Tuesday, September 24, 2019|
|Last date of intimation regarding acceptance or non-acceptance of tendered Equity Shares to the Stock Exchanges||Monday, September 30, 2019|
|Last date of settlement of bids on the Stock Exchanges||Tuesday, October 1, 2019|
|Last date of Payment to Eligible Shareholders/return of unaccepted demat shares by Stock Exchange to Seller Member/ Eligible Shareholders||Tuesday, October 1, 2019|
|Last date of extinguishment of Equity Shares||Tuesday, October 8, 2019|
Necessity of Adani Ports Buyback
The Company’s management strives to increase Shareholders’ value and the Buy-back would result in, amongst other things:
- Improving returns to shareholders;
- Providing the Equity Shareholders an option to participate and receive cash payment in lieu of the Equity Shares to be accepted under the Buy-back;
- Enhancing overall shareholder value;
- Achieving optimum capital structure;
- Enhance the effects of short-term market volatility; and
- Enhancing shareholders’ confidence.
Impact of Adani Ports Buyback on the Company
They believe that the Buyback is not likely to cause any material impact on the profitability/earnings of the Company except to the extent of reduction in the amount available for investment, which the Company could have otherwise deployed towards generating investment income.
Assuming full acceptance of Equity Shares in the Buy-back, the aggregate percentage shareholding of the Promoters and the persons in control of the Company after the Buy-back may increase or decrease, as the case may be, from 62.30%, which is the shareholding as on the date of this Draft Letter of Offer to [●]% of the post Buy-back Equity Share capital of the Company.
On assuming full acceptance of Equity Shares in the Buy-back, the aggregate percentage shareholding of the public after the Buy-back, may increase or decrease, as the case may be, from 37.70%, which is the shareholding as on the date of this Draft Letter of Offer to [●]% of the post Buy-back Equity Share capital of the Company.
Post completion of the Buy-back, the debt-equity ratio of the Company on a standalone basis and a consolidated basis will not be greater than twice the aggregate of the paid-up share capital and free reserves
Salient financial parameters consequent to the Buyback based on the audited standalone and consolidated financial
statements for the half year ended on March 31, 2019, are as under:
|Parameters|| Consolidated Financial|
|Pre Buyback||Post Buyback||Pre Buyback||Post Buyback|
|Net Worth (Rs in Lakhs)||20,49,167.00||18,53,167.00||24,74,814.00||22,78,814.00|
|Return on Net Worth %||13.61||14.33||17.60||18.38|
|Earnings Per Equity Share (EPS)|
(Basic) (in Rs)
|Book Value per share (in Rs)||98.95||91.21||119.50||112.16|
|Price Earnings (PE) Multiple||29.68||29.13||19.62||19.25|
|Debt/ Equity ratio||0.92||1.01||0.85||0.92|
Basis of Calculating Adani Ports and Special Economic Zone Buyback Price
The Buy-back Price has been arrived at after considering various factors such as the average closing prices of the Equity Shares on NSE and BSE, where the Equity Shares are listed and traded, the net worth of the Company and the impact of the Buy-back on the earnings per Equity Share.
More on Adani Ports and Special Economic Zone Buyback Price Calculation
The Buy-back Price represents
- Premium of 32.78% and 32.73% over the average closing prices of the Equity Shares on NSE and BSE, respectively, during the three months preceding May 30, 2019 (the date of the intimation to the Stock Exchanges regarding the Board Meeting); and
- 27.26% and 27.30% over the average closing prices of the Equity Shares on NSE and BSE, respectively, for two weeks preceding the date of the intimation to the Stock Exchanges regarding the convening of the Board Meeting.
Source of Funds for the Buyback
The Company has confirmed that the funds for the Buy-back will be made available from its internal accruals and proceeds from the current investments of the Company.
Company shall transfer from its free reserves or securities premium account a sum equal to the nominal value of the Equity Shares bought back through the Buy-back to the capital redemption reserve account and the details of such transfer shall be disclosed in its subsequent audited balance sheet.
Company will not be using any borrowed funds for the Buy-back.
Adani Ports – Manager to the Buyback
|JM Financial Limited|
7th Floor, Cnergy
Appasaheb Marathe Marg
Maharashtra 400 025
Tel: +91 22 6630 3030
Fax: +91 22 6630 3330
Contact Person: Ms. Prachee Dhuri
SEBI Registration Number: INM000010361
Validity period: Permanent
Adani Ports – Registrar to the Buyback
|Link Intime India Private Limited|
C-101, 247 Park L.B.S. Marg
Vikhroli (West), Mumbai
Maharashtra 400 083
Tel: +91 22 4918 6300
Fax: +91 22 4918 6195
Contact Person: Sumeet Deshpande
SEBI Registration Number: INR000004058
Validity period: Permanent
Adani Ports and Special Economic Zone Limited Contact Details
|Company Contact Details|
| Adani Ports and Special Economic Zone LIMITED|
Registered Office: Adani House,
Near Mithakhali Six Roads,
Navrangpura, Ahmedabad 380 009,
Contact Person: Kamlesh Bhagia,
Company Secretary and Compliance Officer
Tel. No.: +91 79 2656 5555; Fax: +91 79 2555 5600;
Corporate Identity Number: L63090GJ1998PLC034182
Adani Ports and Special Economic Zone Limited Buyback News
News 1 – Buyback PDF / Letter of Offer [Download]
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