Adani Ports jumps 8% as MoEF grants environmental clearance for Mundra SEZ

NEW DELHI: Shares of Adani Ports and Special Economic Zone jumped as much as 8.4 per cent in trade to its 52-week high level of Rs 285.45 on Wednesday, after the company said it has got the environmental clearance for the special economic zone from the Ministry of Environment and Forests (MoEF) for the Mundra SEZ.

The stock closed at Rs 281, up 6.8 per cent on the Bombay Stock Exchange. A total of 1.2 million shares changed hands compared to its two week average of 1.1 million shares on the BSE.

The approval comes two days after the Supreme Court on Monday aked MoEF to decide grant of clearance or denial to Adani Ports and SEZ.

The clearance will now allow APSEZ, which operates India’s only port-based SEZ, to set up a mega desalination plant, an effluent treatment plant and intake of sea water, all of which constitute primary infrastructure to be provided for companies setting up business units in the special economic zone.

"The grant of the environmental clearance to Mundra SEZ by MoEF will encourage investment in SEZ and the development is expected to be at a much faster pace as it provides seamless connectivity through sea, rail and road," Gautam Adani, Chairman of Adani Group said.

P Phani Sekhar, Fund Manager-PMS, Angel Broking, said, "This is certainly a big relief for Adani Ports because if you look at the stock price movement for some time now this was already factored in but this clearance was something that was not seen on the ground."

"It is too early to pencil in what kind of more benefits will flow in because these projects are typically long term for the first benefit to be seen it will take another five years," added Shekhar.