Adani Ports surges 6% on announcement of buyback schedule

The proposed Rs 1,960 crore share buyback offer will open on September 6, 2019 and close on September 20.

Shares of Adani Ports and Special Economic Zone (APSEZ) climbed 6 per cent to Rs 371 in intra-day trade on the BSE on Monday after the company announced that the proposed share buyback offer will open on September 6, 2019, and close on September 20.

In June, APSEZ had announced its plan to buy back up to 39.2 million equity shares, representing 1.89 per cent stake, at Rs 500 per share, each payable in cash for an amount aggregating up to Rs 1,960 crore on a proportionate basis, through the tender offer route.

The company said it has received final comments on the draft letter of offer dated June 13, 2019 from the market regulator Securities and Exchange Board of India (Sebi) in relation to the buy-back on August 23, 2019.

The company will dispatch the letter of offer along with the tender form to eligible shareholders (being the shareholders of the Company as on the record date, June 21, 2019) on or before Thursday, August 29, 2019, it said.

APSEZ has already undertaken the majority of its large capex investments and most of these assets have now started yielding healthy margins. The share buyback will further help us support our loyal shareholders that continue to believe in our vision, the company said in its fiscal 2019 annual report.

At 02:22 pm, the stock was trading 5.6 per cent higher at Rs 369 on the BSE, as compared to 2 per cent rise in the S&P BSE Sensex. The trading volumes on the counter nearly doubled with a combined 4.2 million shares changing hands on the BSE and NSE so far.