APSEZ plunges 8% on Adani Agro Logistics buyout plan

NEW DELHI: Shares of Adani Ports and Special Economic Zone (APSEZ) plunged 8 per cent in Monday’s trade after Adani Logistics, an arm, said it would acquire Adani Agri Logistics from Adani Enterprises in an all-cash deal at a proposed enterprise value of Rs 1,662 crore.

The scrip closed at Rs 324.85 down 8.26 per cent. The BSE Sensex stood 0.95 per cent higher at 36,213.38.

“The acquisition raises many an eyebrow on the related-party transaction. Historically, APSEZ has had related-party transactions involving loans and advances towards other group companies. Even good assets are getting bought out in this transaction, it would still weigh on the stock performance in the near term,” Edelweiss Securities said.


The transaction is expected to complete by March 2019.

Edewleiss has retained its buy rating on the stock but said an overhang on the stock is given, as the market has been sensitive towards such related-party transactions

The brokerage remained confident on the company’s long-term prospects given its strong positioning among shipping lines and strong cash flow from the existing ports business.