Adani Ports Stock Rises After Securing Major Deal for Multipurpose Terminal at Deendayal Port

Shares of Adani Ports and Special Economic Zone (APSEZ) climbed nearly 2% during Thursday's early trading session. This surge followed the company's announcement of a new agreement with the state-run Deendayal Port Authority. APSEZ, which handles ports and logistics for the Adani Group, is set to develop a multipurpose terminal at Gujarat’s Kandla Port. The terminal, once completed, will handle various types of cargo and is expected to become operational by the 2027 fiscal year.

On the heels of this news, Adani Ports' stock opened higher at ₹1,440, a 0.7% rise from its previous close of ₹1,430.20 on the BSE. As trading continued, the stock gained momentum, climbing as much as 1.8% to hit ₹1,456.05, boosting the company's market capitalization to ₹3.14 lakh crore.

Even at its current price, the stock remains roughly 10% below its 52-week high of ₹1,607.95, reached on June 3, 2024. However, it has almost doubled from its 52-week low of ₹754.50, recorded on October 26, 2023. Over the past year, APSEZ shares have seen a 70% increase, including a 39% gain so far in 2024. Over the last six months, the stock is up by 12%, although it has dipped 3% in the past month.

In a stock exchange filing made Wednesday evening, APSEZ confirmed it had signed a concession agreement with the Deendayal Port Authority to develop Berth No. 13 at Kandla. This 30-year concession was awarded to the company in July 2023, and the berth, which will stretch 300 meters, is designed to handle 5.7 million metric tonnes (MMT) of cargo annually.

The project will be carried out under the Design, Build, Finance, Operate, and Transfer (DBFOT) model, allowing APSEZ to manage multipurpose clean cargo, including containers. “Berth No. 13 will enhance our operations at Deendayal Port by allowing us to handle multipurpose clean cargo alongside the dry bulk we currently manage. This will strengthen our presence on the western coast and increase our capacity to serve customers across Gujarat and northern India," said Ashwani Gupta, the CEO and Whole-time Director of APSEZ.

In August, APSEZ also established a wholly owned subsidiary named DPA Container and Clean Cargo Terminal Limited (DPACCCTL) to oversee operations at Berth No. 13. The new subsidiary has a paid-up share capital of ₹5 lakh, consisting of 50,000 equity shares valued at ₹10 each. Its purpose is to manage the development, operation, and maintenance of the berth, with a focus on handling clean and container cargo.

Adding to its recent expansion efforts, APSEZ also concluded the acquisition of an 80% stake in Astro Offshore, an international operator of offshore support vessels. This $185 million all-cash deal is part of APSEZ’s ongoing strategy to position itself as a major global player in marine logistics.

APSEZ currently operates several key ports on India's western coast, including Mundra, Tuna, Dahej, and Hazira in Gujarat, and others across the country, managing 27% of India’s total port volume. The company is also making strides internationally, working on projects in Sri Lanka, Israel, and Tanzania.