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Adani Ports Buyback – Review, Offer Details, Price, Dates & more

In this article, we will discuss the Adani Ports and Special Economic Zone Limited Buyback offer, buyback price, buyback size, Adani Ports buyback record date, company financial, buyback necessity and its impact on the company.

Adani Ports Buyback Details

Buyback TypeTender Offer
Buyback Opening Date
Buyback Closing Date
*Buyback Offer AmountRs. 19,60,00,00,000 /-
Buyback No. of Shares3,92,00,000
Face ValueRs. 2/-
Date of Buyback Approval June 4, 2019
*Date of Public Announcement June 6, 2019
Buy Back Price Rs. 500/-
Buy Back Premium27.30%

Adani Ports Buyback Opening and Closing Date

The starting and closing dates of this buyback are NA.

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 Buyback Share Price

At a price of Rs. 500/- (Rupees Five Hundred Only) per Equity Share.

Adani Ports and Special Economic Zone Buyback Size

The Adani Ports Buyback size is for an aggregate amount not exceeding Rs. 19,60,00,00,000/- (Rupees Nineteen Crores Sixty Lakhs only)


Adani Ports and Special Economic Zone Buyback Acceptance Ratio

Find profit & profit percentage based on various acceptance rate, The profit is calculated based on 1000 shares.

Acceptance RatioTotal Shares AcceptedBuyback PriceBuyback AmountProfitProfit%
20%200500100000186004.57%
40%400500200000372009.14%
60%6005003000005580013.71%
80%8005004000007440018.28%
100%10005005000009300022.85%

Profit is calculated from 19th June 2019 share price i.e. Rs.407 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.18600 as profit amount & 4.57% 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.55800 @ 13.71% profit percentage.


Adani Ports and Special Economic Zone Limited Buyback Overview

According to India Infrastructure Report 2019, they are India’s largest private developer and operator of ports and related infrastructure. They provide fully integrated marine, stevedoring, handling, storage, warehousing, transportation and other value-added logistics services. They have invested in port based special economic zones (“SEZs”) and logistics/inland container depots (“ICDs”) in India.

Adani Ports have expanded our business from operating a single port at Mundra on the west coast of India to being a pan-Indian integrated logistics service provider operating nine ports/terminals and three ICDs. The company is further expanding their capacities at a few of their existing ports and are also in the process of developing container terminals in the south of India.

They also intend to continue exploring business opportunities, to cater to the growing business demand in India and outside India.


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)

ParticularsFor the year
ended March 31,
2019
March
31, 2018
For the year
ended March 31,
2017
Audited
Total Income7,67,928.008,14,114.006,16,353.00
*Total Expenses3,54,143.003,84,144.002,32,988.00
Depreciation and Amortization
expense
47,421.0047,052.0054,071.00
Profit/(Loss) before Tax3,66,364.003,82,918.003,29,294.00
Provision for Tax
(including Deferred Tax)
1,02,592.001,42,108.0019,233.00
Profit/(Loss) after Tax2,63,772.002,40,810.003,10,061.00
Equity share capital41,419.0041,419.0041,419.00
Other Equity20,07,748.0017,86,907.0016,45,066.00
Net worth20,49,167.0018,28,326.0016,86,485.00
Debt (excluding working capital)18,78,559.0019,40,397.0017,00,978.00

Adani Ports and Special Economic Zone Limited Buyback Dates

Date of the Board meeting held to approve the proposal for Buy-back of Equity SharesTuesday, June 4, 2019
Date of publication of Public Announcement for the Buy-backFriday, June 7, 2019
Record Date for determining the Buy-back Entitlement and the Eligible ShareholdersFriday, June 21, 2019
 Buy-back Opening Date
 Buy-back Closing Date
Last date of verification by Registrar to Buy-back
*Last date of intimation to the Stock Exchange regarding acceptance or non-acceptance of tendered Equity Shares by the Registrar and Manager to the Buy-back
Last date of settlement of bids on the Stock Exchange
*Last date of return of unaccepted demat shares by Stock Exchange to Seller Member / Broker
Last date of extinguishment of Equity Shares bought back


Necessity of Adani Ports and Special Economic Zone Limited 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
  • Also, enhancing shareholders’ confidence.

Impact of Adani Ports and Special Economic Zone Limited 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.

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:

ParametersBased on Consolidated Financial
Statements
Based on Standalone Financial
Statements
Pre BuybackPost BuybackPre BuybackPost Buyback
Net Worth (Rs in Lakhs)20,49,167.0018,53,167.0024,74,814.0022,78,814.00
Return on Net Worth %13.6114.3317.6018.38
Earnings Per Equity Share (EPS)
(Basic) (in Rs)
12.7412.9819.2719.64
Book Value per share (in Rs)98.9591.21119.50112.16
Price Earnings (PE) Multiple29.6829.1319.6219.25
Debt/ Equity ratio0.921.010.850.92

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.

It 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.

The Company will not be using any borrowed funds for the Buy-back.


Adani Ports and Special Economic Zone Limited – Manager to the Buyback

JM Financial Limited
7th Floor, Cnergy
Appasaheb Marathe Marg
Prabhadevi, Mumbai
Maharashtra 400 025
Tel: +91 22 6630 3030
Fax: +91 22 6630 3330
Contact Person: Ms. Prachee Dhuri
E-mail: [email protected]
SEBI Registration Number: INM000010361
Validity period: Permanent

Adani Ports and Special Economic Zone Limited – 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
E-mail: [email protected]
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, Gujarat, India
Contact Person: Kamlesh Bhagia, Company Secretary and Compliance Officer
Tel. No.: +91 79 2656 5555; Fax: +91 79 2555 5600; E-mail: [email protected]
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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