Adani Ports share price rises almost 3% on US DFC investment boost
Adani Ports share price rose almost 3% after the company said US International Development Finance Corporation (DFC) will fund Adani’s joint venture in Sri Lanka for $553 million.
Adani Ports share price rose almost 3 per cent in intraday trade on BSE on Wednesday, November 8, after the company said US International Development Finance Corporation (DFC) will fund Adani’s joint venture (JV) in Sri Lanka, for $553 million.
"US International Development Finance Corporation (DFC) has announced that it will be funding Colombo West International Terminal Pvt. Ltd. (CWIT) – a consortium of Adani Ports and SEZ, Sri Lanka's leading enterprise John Keells Holdings (JKH) and the Sri Lanka Ports Authority – to the tune of $553 million," Adani Ports said in an exchange filing.
Adani Port and Special Economic Zone share price opened at ₹802 against the previous close of ₹797.20 and rose 2.75 per cent to the intraday high of ₹819.10. Around 12;30 pm, the stock was 2.42 per cent up at ₹816.50 on BSE.
“When completed, Colombo West International Terminal project will transform the socio-economic landscape, not just in Colombo but across the island, through thousands of direct and indirect new employment opportunities and by massively boosting Sri Lanka’s trade and commerce ecosystem,” said Karan Adani, Whole Time Director and CEO, Adani Ports and Special Economic Zone.
Adani Ports share price hit its 52-week low of ₹394.95 on BSE on February 3, 2023. As of the previous session's close, the stock has jumped 102 per cent from its 52-week low.
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According to a Bloomberg report, the US will provide $553 million in financing for a port terminal in Colombo as New Delhi and Washington look to curtail China’s influence in South Asia.
"The US funding also signals renewed efforts to loosen Beijing’s sway over Sri Lanka after Colombo splurged on Chinese port and highway projects before its economic meltdown last year, which left it highly indebted to Beijing. India also wants to tilt the balance of power in its neighbourhood," the Bloomberg report said.
Meanwhile, Adani Ports reported a 48 per cent growth in cargo handling at seaports it operated in October. The Gautam Adani's firm handled about 37 million metric ton (MMT) of total cargo in October, up 48 per cent year-on-year (YoY).
According to APSEZ, its Haifa Port in Israel handled over 1.1 MMT of cargo in October, marginally better than the average cargo volume run rate of the last six months.
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