Adani Ports surges amidst prospects of key role in mega economic corridor
PORTS & SHIPPING

Adani Ports surges amidst prospects of key role in mega economic corridor

Adani Ports & Special Economic Zone's stock surged by over 4% to reach a peak of Rs 857.70 on the NSE last Monday. Market enthusiasm is driven by expectations that the company will emerge as a major beneficiary of the port infrastructure developments within the forthcoming economic corridor, connecting the Middle East, South Asia, and eventually Europe.

This economic corridor entails the establishment of crucial rail and port connections bridging the Middle East, South Asia, and Europe—a development recently praised by US President Joe Biden as a significant accomplishment during the G20 summit. The announcement was a pivotal outcome of a three-day diplomatic gathering involving leaders from the United States, India, and Saudi Arabia.

Shares of Adani Ports, India's premier port operator, experienced gains, much like railway stocks, which saw substantial surges of up to 15% during early trading. IRCON, for instance, witnessed a notable 15% increase, while IRFC shares soared by 10%, reaching the upper circuit. RVNL also registered a robust uptick of 9.4%, and Titagarh Wagons traded 5% higher.

Nevertheless, detailed information regarding project financing and timelines remains elusive. This ambitious initiative encompasses the laying of railway lines in the Middle East, subsequently connecting them to India via port infrastructure, as reported by Reuters. The Biden administration is positioning itself as an alternative partner and investor for developing countries, aiming to counter China's Belt and Road initiative in global infrastructure development within the G20 framework.

Simultaneously, the promoter group led by billionaire Gautam Adani has increased its stake in Adani Ports from 63.06% to 65.23%, according to company filings. The group has also augmented its stake in the flagship entity, Adani Enterprises, from 69.87% to 71.93%. This strategic move is part of Adani's ongoing efforts to recover from previous setbacks due to damaging reports.

Notably, this marks the second time in less than a month that the promoters have increased their stakes in the flagship firm, which incubates new businesses.

Resurgent Trade and Investment acquired nearly 1% of Adani Ports and Special Economic Zone through open market transactions, while Emerging Market Investment DMCC purchased an additional 1.2%. Both of these entities are part of the promoter group.

In the case of Adani Enterprises, the shares were acquired by Kempas Trade and Investment and Infinite Trade and Investment. Filings reveal that these stakes were procured through open market transactions conducted between August 14 and September 8.

These recent developments closely follow the investment made by the U.S.-based boutique investment firm GQG Partners in Adani group companies, underscoring the growing interest in the Adani conglomerate.

Adani Ports & Special Economic Zone's stock surged by over 4% to reach a peak of Rs 857.70 on the NSE last Monday. Market enthusiasm is driven by expectations that the company will emerge as a major beneficiary of the port infrastructure developments within the forthcoming economic corridor, connecting the Middle East, South Asia, and eventually Europe.This economic corridor entails the establishment of crucial rail and port connections bridging the Middle East, South Asia, and Europe—a development recently praised by US President Joe Biden as a significant accomplishment during the G20 summit. The announcement was a pivotal outcome of a three-day diplomatic gathering involving leaders from the United States, India, and Saudi Arabia.Shares of Adani Ports, India's premier port operator, experienced gains, much like railway stocks, which saw substantial surges of up to 15% during early trading. IRCON, for instance, witnessed a notable 15% increase, while IRFC shares soared by 10%, reaching the upper circuit. RVNL also registered a robust uptick of 9.4%, and Titagarh Wagons traded 5% higher.Nevertheless, detailed information regarding project financing and timelines remains elusive. This ambitious initiative encompasses the laying of railway lines in the Middle East, subsequently connecting them to India via port infrastructure, as reported by Reuters. The Biden administration is positioning itself as an alternative partner and investor for developing countries, aiming to counter China's Belt and Road initiative in global infrastructure development within the G20 framework.Simultaneously, the promoter group led by billionaire Gautam Adani has increased its stake in Adani Ports from 63.06% to 65.23%, according to company filings. The group has also augmented its stake in the flagship entity, Adani Enterprises, from 69.87% to 71.93%. This strategic move is part of Adani's ongoing efforts to recover from previous setbacks due to damaging reports.Notably, this marks the second time in less than a month that the promoters have increased their stakes in the flagship firm, which incubates new businesses.Resurgent Trade and Investment acquired nearly 1% of Adani Ports and Special Economic Zone through open market transactions, while Emerging Market Investment DMCC purchased an additional 1.2%. Both of these entities are part of the promoter group.In the case of Adani Enterprises, the shares were acquired by Kempas Trade and Investment and Infinite Trade and Investment. Filings reveal that these stakes were procured through open market transactions conducted between August 14 and September 8.These recent developments closely follow the investment made by the U.S.-based boutique investment firm GQG Partners in Adani group companies, underscoring the growing interest in the Adani conglomerate.

Next Story
Real Estate

Real Estate Booms in Emerging Cities

India's rapid infrastructure expansion is unlocking real estate potential in 30 emerging cities, with land prices projected to grow up to 5.2 times by 2035, according to a report by Colliers. The transformation is driven by the development of key expressways, positioning cities like Nagpur, Jaipur, and Lucknow as rising investment hubs. Nagpur tops the list of emerging cities, bolstered by the 701-km Samruddhi Mahamarg Expressway, which has significantly enhanced connectivity and growth prospects. Jaipur and Lucknow follow closely, with burgeoning micro-markets such as Ajmer Road and Raebarel..

Next Story
Products

Smart Lockers Debut on Delhi-Meerut RRTS

The National Capital Region Transport Corporation (NCRTC) has launched smart lockers at Sahibabad and Ghaziabad stations along the Regional Rapid Transit System (RRTS) corridor, providing passengers with secure storage for luggage and e-commerce parcels. The initiative will be extended across all stations on the corridor in the future. The RRTS, a high-speed rail project spanning 82 kilometers, connects Delhi, Ghaziabad, and Meerut, offering faster and more convenient commutes. Currently, trains operate on a 55-kilometer stretch, covering two stations in Delhi, eight in Ghaziabad, and one in ..

Next Story
Infrastructure Urban

JK Tyre Secures $100M Sustainability-Linked Loan

India’s tyre industry has achieved a significant milestone as JK Tyre secured a $100 million Sustainability-Linked Loan (SLL) from the International Finance Corporation (IFC). The first deal of its kind in the sector will drive the company’s growth plans and strengthen its sustainability initiatives. Boosting Production Capacity The loan allocates $30 million to JK Tyre & Industries Ltd and $70 million to its subsidiary, Cavendish Industries Ltd (CIL). The funds will enhance production at JK Tyre’s Banmore plant in Madhya Pradesh, focusing on Passenger Car Radial (PCR) tyres, and CILâ€..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000