🌊 At a glance:
Adani Ports and Special Economic Zone Ltd just announced a tender offer to repurchase up to $1 billion of its outstanding senior USD bonds, spread over the next six quarters.
Translation:
They’re planning to buy back their dollar debt in tranches — a rare but bold move from an Indian infra major.
This isn’t a dividend. It’s not a bonus. It’s a Wall Street signal:
“We clean our own mess. And we have the dollars to do it.”
💰 Tender Offer 101: What’s Actually Happening?
| 📌 What is it? | A buyback of USD-denominated bonds (aka foreign debt) |
|---|---|
| 💵 Amount | Up to $1 billion (approx ₹8,300 Cr) |
| 📅 Timeline | Over next 6 financial quarters (till FY27) |
| ⚙️ Method | Tender offer – bondholders will be invited to sell voluntarily |
| 📋 Authority | Finance Committee of Adani Ports to decide execution timing & terms |
📊 Why Is Adani Doing This Now?
🔹 1. Clean-Up Post-Hindenburg
After the 2023 Hindenburg fiasco, deleveraging became the buzzword in every Adani boardroom. This buyback:
- Reduces dollar exposure
- Improves credit profile
- Signals confidence to global bondholders
🔹 2. Free Cash Flow Weapon
Adani Ports had ₹5,600 Cr+ operating profit in FY24. They’re using internal cash
To Read Full 16 Point ArticleBecome a member