Adani Ports Gains Most In Nearly Four Months On Introduction Of Draft Indian Ports Bill
The draft bill will consolidate and amend laws relating to ports, and address pollution and maritime treaty-related issues.
Shares of Adani Ports and Special Economic Zone Ltd. gained the most in nearly four months after the government introduced the Draft Indian Ports Bill, 2022, for public consultation.
The bill, drafted by the Ministry of Ports, Shipping and Waterways, seeks to "establish a national council for fostering structured growth and development of the port sector, and ensure optimum utilisation of the coastline of India".
It will also consolidate and amend the laws relating to ports, and address pollution and maritime treaty-related issues.
The bill also seeks to establish a Maritime State Development Council for "effective administration, control and management of non-major ports in India and provide for adjudicatory mechanisms for redressal of port related disputes". The council will be chaired by the union minister for ports, shipping and waterways.
The billionaire Gautam Adani-controlled group’s flagship firm operates 12 ports and terminals along the western and eastern coasts of the country, making it India's largest private ports developer.
Strategically important Mundra, Dahej, Mormugao, Visakhapatnam, Krishnapatnam and Ennore are some of the ports that are operated by Adani Ports. In all, these 12 represent 24% of India’s total port capacity.
The stock of the company gained as much as 6.1% on the introduction of the bill. This is the most the stock has gained since April 26. It closed 4.6% higher on Friday.
Of the 24 analysts tracking the company, 21 maintain a 'buy', two suggest a 'hold', while one recommends a 'sell', according to Bloomberg data. The 12-month consensus price target implies an upside of 2.4%.
Disclaimer: Adani Enterprises is in the process of acquiring a 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.