Business

Adani Ports has commenced a buyback of its debt securities worth $130 million

FILE PHOTO: The logo of the Adani Group is seen on the facade of one of its buildings on the outskirts of Ahmedabad, India, April 13, 2021. REUTERS/Amit Dave

Adani Ports and Special Economic Zone Ltd has announced a buyback of its foreign currency bonds worth $130 million. The company is trying to reduce its gross debt, which was Rs 42,750 crore as of September 2022. The company has offered to pay cash to buy back its 3.375 per cent, Senior Notes that are due in 2024.

A buyback is a corporate action in which a company repurchases its own shares or bonds from the market. The aim of a buyback is to reduce the number of shares or bonds outstanding and increase the value of the remaining shares or bonds.

In this case, Adani Ports and Special Economic Zone Ltd is trying to reduce its debt by buying back its foreign currency bonds. The company is offering to pay cash to buy back its 3.375 per cent, Senior Notes that are due in 2024. This will help the company reduce its debt and improve its financial position.

It remains to be seen whether the buyback will be successful, as it depends on the willingness of bondholders to sell their bonds back to the company. However, if successful, the buyback could help Adani Ports and Special Economic Zone Ltd improve its financial position and reduce its debt burden.

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Mugilan N

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