10 Jul , 2024 By : Debdeep Gupta
Shares of Adani Ports gained nearly 1 percent on July 10, a day after the company informed that it had been awarded the Letter of Intent (LoI) for the development, operation, and maintenance of Berth No. 13 at Deendayal Port. The LoI is for a 30-year concession period through a competitive bidding process.
Adani Ports will operate the berth under DBFOT (Design, Build, Finance, Operate, and Transfer) basis for multipurpose clean cargo, including container cargo. Notably, Berth No. 13 is 300m long and offers 5.7 MMT capacity annually. The berth is likely to be commissioned during FY26-27.
At 9:42 am, Adani Ports shares were trading half a percent higher at Rs 1,487.15 apiece on the National Stock Exchange (NSE). So far this year, the stock has soared 41 percent, beating Nifty's returns of 12 percent during this period.
This comes after reports of Gautam Adani's plans to start building ships at the Adani Group flagship Mundra Port, as yards in countries like China, South Korea, and Japan are booked until 2028. This is likely to result in global fleet owners looking at India as an alternate manufacturing site for new vessels, reported the Economic Times.
India is ranked 20th in the world commercial shipbuilding market with a share of less than 1 percent. This move by the Adani group aligns with India's bold target laid out last month to become one of the top 10 shipbuilders as per the Maritime India Vision 2030 and be in the top five by 2047.
Currently, Mundra handles the highest-ever volume by any port in India and Adani Group has lined up major investments for upcoming and ongoing projects.
The conglomerate also has plans to build the world’s largest renewable energy manufacturing hub in Mundra, Gujarat, which will also house production units of almost all things that go into green energy generation facilities, including polysilicon, ingots, wafers, cells, solar modules and even wind turbines.
In the last year, the stock zoomed 106 percent, more than doubling investors' money. In comparison, Nifty delivered returns of 26 percent during this period.
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