Adani Ports and Special Economic Zone, a company under the Adani Group, is planning to raise about ₹6,000 crore through Non-Convertible Debentures (NCDs). The company’s Board of Directors gave the go-ahead for this decision during a meeting held on Thursday. These funds from the NCDs will be used for various purposes such as capital expenditure, refinancing existing debt, and supporting general corporate needs. The company aims to raise the funds in multiple tranches through private placements, and the NCDs will eventually be listed on stock exchanges.
The decision to raise funds through NCDs comes as a strategic move by Adani Ports and Special Economic Zone to strengthen its financial position and support its growth plans. By opting for NCDs, the company can access funds from investors while also diversifying its sources of financing. This move is expected to have a positive impact on the company’s operations and help it achieve its long-term objectives. Additionally, listing the NCDs on stock exchanges will enhance transparency and provide investors with an opportunity to participate in the company’s growth.
The process of raising funds through NCDs involves issuing these debt instruments to investors in exchange for funds. This allows the company to raise capital without diluting ownership or control. The decision to use the funds for capital expenditure reflects the company’s focus on expanding its infrastructure and enhancing its capabilities. By refinancing existing debt, Adani Ports and Special Economic Zone can improve its debt profile and reduce interest costs. Moreover, supporting general corporate purposes indicates the flexibility that the funds will provide in meeting various operational needs. Overall, the decision to raise funds through NCDs is a strategic move that is expected to benefit the company in the long run.
