Adani Ports’ Market Comeback: A Story of Grit and Recovery
MUMBAI — Adani Ports and Special Economic Zone (APSEZ), India’s largest private port operator, has staged a remarkable comeback, re-entering the bond market in 2024 with its biggest-ever rupee-denominated debt issue after a 17-month hiatus. The move, raising ₹5,000 crore ($585 million) through 15-year bonds at a 7.75% coupon rate, signals a strong recovery from the turmoil sparked by Hindenburg Research’s 2023 allegations of fraud and stock manipulation. With strategic debt management and robust operations, APSEZ is proving it can weather storms, though regulatory scrutiny and global risks keep the path bumpy.
The Hindenburg report, dropped in January 2023, accused the Adani Group of shady offshore dealings and market rigging, wiping $114 billion off its market value, with APSEZ’s shares tanking 30% at their lowest. The group denied the claims, calling them “baseless,” but investor confidence took a hit. “It was a gut punch,” said Priya Sharma, a Mumbai-based market analyst. “Adani had to rebuild trust from scratch.” Fast forward to May 2024, and APSEZ’s stock had not only recovered but doubled from its post-report low, hitting ₹1,534 by August.
The bond issuance in May 2024 was a bold step. Fully snapped up by the Life Insurance Corporation of India (LIC) at a tight yield spread, it marked APSEZ’s largest and longest-tenured bond deal, rated AAA by Crisil, Icra, and Care. The funds are earmarked to refinance dollar-denominated debt and fuel expansion, like the $1.2 billion Haifa port deal in Israel. Earlier in January 2024, APSEZ raised ₹500 crore through five- and 10-year bonds at 7.8-7.9%, showing a savvy shift to cheaper domestic borrowing. “They’re playing it smart lowering costs and leaning on local trust,” said Anil Desai, a bond trader in Delhi
APSEZ’s recovery hinged on aggressive moves. It prepaid $130 million of 2024 bonds in April 2023 and bought back $195 million more in September, easing debt pressure and boosting investor faith. A $1.9 billion investment from GQG Partners and a $553 million U.S. loan for a Sri Lanka port project, cleared after due diligence, further shored up credibility. “We’ve shown our balance sheet is rock-solid,” said an APSEZ spokesperson in a May 2024 statement. The company’s 13 ports, handling 27% of India’s cargo, and a 153% EBITDA growth to ₹86,789 crore in FY24, underline its operational strength.
Yet, the road hasn’t been smooth. A November 2024 U.S. indictment alleging bribery in Indian power contracts rocked the group, with Adani Green Energy bonds dropping 15 cents to 80 cents on the dollar. APSEZ, though not directly named, felt the heat, shelving a $600 million bond plan. SEBI’s ongoing probe into Hindenburg’s claims adds uncertainty, with critics on X like
Global Watchdog wFor local communities, APSEZ’s success is a mixed bag. In Mundra, Gujarat, port worker Rajesh Yadav says expansion means more jobs: “My wages are up 20% in two years.” But environmentalists worry about coastal damage from port projects. Nationally, APSEZ’s growth bolsters India’s trade infrastructure, handling 400 million tonnes annually, with plans to hit 1 billion by 2030.
Looking ahead, APSEZ’s strategy refinancing debt, diversifying funding, and expanding globally sets a playbook for corporate recovery. With RBI rate cuts lowering borrowing costs and India’s bond market thriving, APSEZ is well-positioned. But navigating regulatory and geopolitical hurdles will be key. “They’ve clawed back trust, but one misstep could undo it,” Sharma cautioned. For now, Adani Ports’ bold market return shows resilience can pay off, turning a crisis into a chance to rebuild stronger.arning of “lingering governance risks.” The Adani Group has called these allegations “recycled” and denied wrongdoing.
For local communities, APSEZ’s success is a mixed bag. In Mundra, Gujarat, port worker Rajesh Yadav says expansion means more jobs: “My wages are up 20% in two years.” But environmentalists worry about coastal damage from port projects. Nationally, APSEZ’s growth bolsters India’s trade infrastructure, handling 400 million tonnes annually, with plans to hit 1 billion by 2030.
Looking ahead, APSEZ’s strategy refinancing debt, diversifying funding, and expanding globally sets a playbook for corporate recovery. With RBI rate cuts lowering borrowing costs and India’s bond market thriving, APSEZ is well-positioned. But navigating regulatory and geopolitical hurdles will be key. “They’ve clawed back trust, but one misstep could undo it,” Sharma cautioned. For now, Adani Ports’ bold market return shows resilience can pay off, turning a crisis into a chance to rebuild stronger.
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