Adani Ports’ share price rose nearly 3 percent in intraday trade on BSE on Wednesday, November 8, after the company said the US-based International Development Finance Corporation (DFC) would finance Adani’s joint venture (JV) in Sri -Lanka, for $553 million.
“The United States International Development Finance Corporation (DFC) has announced that it is financing Colombo West International Terminal Pvt. Ltd. (CWIT) – a consortium of Adani Ports and SEZ, the flagship company of Sri Lanka John Keells Holdings (JKH) and Sri Lanka. Ports Authority – at $553 million,” Adani Ports said in an exchange filing.
Share price of Adani Port and Special Economic Zone opened at ₹802 against the previous closing of ₹797.20 and rose 2.75 percent to the intraday high of ₹819.10. Around 12;30 pm, the shares were 2.42 percent up at ₹816.50 on BSE.
“When completed, the Colombo West International Terminal project will transform the socio-economic landscape, not only in Colombo but across the island, through thousands of direct and indirect new employment opportunities and by massively strengthening Sri Lanka’s trade and business ecosystem,” said Dear 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. From the end of the previous session, the stock jumped 102 percent from its 52-week low.
According to a Bloomberg report, the United States will provide $553 million in funding for a port terminal in Colombo as New Delhi and Washington seek to limit China’s influence in South Asia.
“The US funding also signals renewed efforts to loosen Beijing’s grip on Sri Lanka after Colombo splashed out on Chinese port and highway projects ahead of its economic collapse last year, which left it heavily indebted to Beijing. India also wants to tilt the balance of power in his country. neighborhood,” the Bloomberg report said.
Also Read: US invests $553 million in Sri Lanka’s Gautam Adani port to counter China’s influence
Meanwhile, Adani Ports reported a 48 percent increase in cargo handling at seaports it operated in October. Gautam Adani’s company handled about 37 million tonnes (MMT) of total cargo in October, up 48 percent year-on-year (YoY).
According to APSEZ, its Haifa Port in Israel handled more than 1.1 MMT of cargo in October, marginally better than the average cargo volume run rate of the last six months.
Updated: 08 Nov 2023, 12:59 IST