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Shares of port infrastructure company Adani Ports and Special Economic Zone Limited plunge as much 9.1 per cent in its biggest intraday per cent drop since January 28.
The company’s unit Adani Logistics approved a proposal for the acquisition of Adani Agri Logistics, Adani Agri Logistics (Dahod), Adani Agri Logistics (Darbhanga) and Adani Agri Logistics (Samastipur) from Adani Enterprises for Rs 946 crores, the company said on Saturday.
Citi has downgraded Adani Port stock to ‘neutral’ from ‘buy’, saying that the acquisition appears expensive and raised questions on capital allocation of the company. It believed that the acquisition might lead to a resurgence of investor concern around related-party transactions. Citi cut the PT to Rs 385 from Rs 500.
Jefferies said that this deal could be viewed with suspicion as Adani Ports’ intention to reward minority shareholders versus its group companies with its cash flows could likely be questioned, especially given market sentiment. However, Jefferies expects the deal to have a positive impact in three to five years, especially on refinancing, keeps PT of Rs 425 and “buy” rating.
Nearly 45 lakh shares change hands compared with the 30-day average of more than 52 lakh shares.
The Adani Ports stock fell to Rs 324.85, down Rs 29.25 (-8.26%) on the BSE on Monday.
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