Adani Group denies buyback plans of Ambuja, Adani Ports

“In relation to the news on share buyback, we would like to clarify that there is no such plan, and hence, we are not in a position to comment on the veracity of said media report,” Adani Ports said in a recent filing.

Ambuja Cements, too, in a separate filing, denied any such plans for the buyback of shares.

Earlier, Economic Times reported that the group is considering a buyback of Ambuja Cements and Adani Ports worth Rs 3,000 crore, citing sources.

The shares of Ambuja Cements and Adani Ports rallied following the news of the buyback after a steep fall last week. On Tuesday, Ambuja Cements was up over 4% at Rs 404, while APSEZ was 2% higher in morning deals on NSE.

The shares of Ambuja Cements plunged as much as 25% on Friday, its steepest intra-day fall since 2006. Shares of Adani Ports declined 23% last week and 16.3% on Friday alone, its lowest close in almost two years.

Ambuja Cements’ balance sheet and return on equity are in the top tier with regard to the Indian cement space.Adani Group has ambitious plans to double the combined capacity of and Ambuja Cements to 140 MTPA in the next five years. Ambuja Cements has a cash equivalent of Rs 3,479 crore as of September 2022.

Meanwhile, Adani Ports, which has robust operating cash flows, plans to become an integrated transport utility providing end-to-end solutions with a targeted cargo handling of 500 MT by FY25.

It has a cash equivalent of Rs 5,835 crore as on September 30, 2022. Adani Ports’ net debt has increased from Rs 31,700 crore in March 2022 to Rs 35,800 crore in September 2022, given the outlay for capex and acquisitions.