Adani Ports and Special Economic Zone (APSEZ) shares plunged as much as 11 per cent on Wednesday on concern over equity dilution after the company said it will seek shareholders nod for raising up to Rs 10,000 crore by issue of shares.
At 10.50 am, shares of APSEZ were trading 9.39 per cent down at Rs 213.75. The scrip opened at Rs 235.50 and touched a high and low of Rs 235.50 and Rs 210, respectively, in trade so far. Sensex was down 97.72 points, or 0.39 per cent, at 25,131.98.
Adani Ports and Special Economic Zone (APSEZ) has received an approval to raise funds by issue of equity shares / convertible bonds through Qualified Institutional Placement (QIP) / GDR / ADR / FCCBs / FCEBs / Convertible Securities for an aggregate amount up to Rs 10,000 crore. The board of director at its meeting held on May 03, 2016 has approved for the same. The board also approved to issue Secured / Unsecured Redeemable Non-Convertible Debentures on private placement basis within the overall borrowing limits of the company.
The company on Tuesday reported a 38 per cent jump in its consolidated net profit to Rs 914.06 core for the March quarter on account of rise in income. The company had posted a net profit of Rs 660.73 crore in the corresponding quarter of the 2014-15 fiscal.
Brokerage Elara Capital said the company’s revenue, operating profit and net income were all below its estimates after adjusting for stake sale in Mundra Solar Tech Park. The brokerage house has ‘Accumulate’ rating on Adani with target price of Rs 271.
APSEZ is part of Adani Group with businesses spanning coal trading, coal mining, oil & gas exploration, ports, multi-modal logistics, power generation & transmission and gas distribution. APSEZ represents a large network of ports with India’s largest Special Economic Zone (SEZ) at Mundra.
(With inputs from agencies)