Multibagger Adani Ports Share In 5-Days Winning Spree; Rejigs Board, To Raise Rs 5,000 Crore Via NCDs

Adani Group-backed shipping and ports flagship company, Adani Ports continued its winning streak for five days in a row on Thursday. Adani Ports is among the multi-baggers of the Group after a bullish trend in 2023. The stock is currently trading near its day's high. Huge buying in Adani Ports can be attributed to the restructuring of its board members with Karan Adani taking the role of MD in the company, replacing his father Gautam Adani. Also, Adani Ports plans to raise to whopping Rs 5,000 crore through the issuance of non-convertible debentures.

Overall, on Thursday, the stock zoomed by nearly 3% by hitting an intraday high of Rs 1,122 apiece on BSE. At the time of writing, the stock price traded near the day's high at Rs 1,117.05 apiece, up by 2.2%. Its market cap was over Rs 2.41 lakh crore.

Adani Ports which is among the top five most valued stocks of Adani Group in terms of m-cap, had touched a new 52-week high of Rs 1,144 apiece on January 3rd, which was also the day when the major board meeting was held.

In the board meeting, Adani Ports elevated CEO Karan Adani to the role of Managing Director, a position which was held by Gautam Adani, Chairman of the Adani Group. The second richest man in India, Gautam is re-designated as 'Executive Chairman' of APSEZ, one of the fastest-growing integrated transport utilities in the world.

As per the regulatory filing, under the leadership of Karan Adani as CEO, Adani Ports has experienced a period of remarkable growth, significantly contributing to the nation's infrastructure development. Beginning his career with the Adani Group in 2009 at Mundra Port, he
took over as CEO in 2016, after which the APSEZ portfolio rapidly expanded with the addition of four ports and terminals in India, one in Sri Lanka and one in Israel.

Also, on the back of a series of strategic expansions and partnerships, APSEZ has become India's fastest-growing and largest private sector port developer and operator, with a spread of 14 ports along India's coastline and two ports outside India. Along with its subsidiary, Adani Logistics Ltd, APSEZ is also the largest and most diversified private rail operator in India, with a considerable share in both logistics and the harbour & dredging business.

Apart from this, Adani Ports also approved the appointment of Ashwani Gupta, the former global Chief Operating Officer at Nissan Motors, as the new Chief Executive Officer of the company. Gupta has a notable track record in fostering key partnerships worldwide and brings nearly three decades of experience across the automotive, retail and manufacturing sectors.

On the new CEO, Karan said that his appointment is a strategic move to strengthen our global leadership position in the port sector. Karan added, "We are confident that his expertise, leadership skills and global exposure will drive exceptional growth and foster new international partnerships aligned with the Adani Group's vision for expansion and innovation."

In regards to fundraising, the board of directors approved the public issuance of secured, rated, listed, redeemable, non-convertible debentures of the face value of Rs. 1,000 each amounting to Rs 5,000 crore in one or more tranches. Further, for the Issue, the board of directors of the Company has delegated the powers to the Finance Committee to, among other things, approve, implement and carry out activities in connection with the Issue.

Adani Ports share price has been rising since December 29, 2023. Taking into consideration its new 52-week high, the stock has gained by a massive nearly 190% compared to its 52-week low of Rs 394.95 apiece which was recorded on February 3, 2023, after a bandwagon of selling in Adani stocks due to Hindenburg report. On the current day's high, the stock is up by 184% from its 1-year lows.

Majority of brokerages are optimistic on Adani Ports in 2024.