The Hindu Business Line : Mundra Port gains 118% on debut

Mumbai, Nov. 27 Mundra Port and Special Economic Zone Ltd on Tuesday made its debut on the BSE and the NSE at a premium of 75 per cent against the issue price of Rs 440. It opened at Rs 770 on both the exchanges and touched a high of Rs 1,050 on the NSE, and Rs 1,150 on the BSE during intra-day and a low of Rs 770. It closed at Rs 962.90 on the NSE and at Rs 961.70 on the BSE.

High subscription

The issue was subscribed 116 times and raised Rs 1.8 lakh crore. The company will utilise the proceeds from the issue to expand its infrastructure base, which include a 30-million tonne coal terminal that will handle coal for Tata Power and Adani Power. Part of the proceeds will also be used to set up SEZs and expand the facilities of Adani Logistics, which is entering into the container train operating business.

Premium expected

Analysts were expecting the stock to open at a premium as this is the only listed port and also there aren’t any comparable peers. “This scarcity value seems to be attracting a good number of people to Mundra Port. With its unique business model, SEZ adjacent to the port, its good connectivity and good locational advantage make it a good long-term bet,” said the Group CEO of a broking house.

Speaking at the sidelines of a press conference Mr Ameet Desai, Executive Director, Mundra Port, said: “We are now looking at raising Rs 1,200 crore through borrowing for a coal processing terminal that is to be on the balance sheet of the company.

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