(APSEZ), the transport and logistics arm of Adani Group, plans to consider a US dollar bond buyback as robust business growth has given it ample cash flows.
The board is scheduled to meet on May 31, 2025, to deliberate on the proposal, subject to prevailing market conditions, according to a regulatory filing.
The move comes on the back of robust cash flows. “We have more cash flow than we can utilise,” Karan Adani, Managing Director of APSEZ, had stated in a recent media interaction.
He noted that the excess liquidity has led to the company’s leverage ratio falling to sub-optimal levels.
In FY25, the company reported an EBITDA (earnings before interest, taxes, depreciation, and amortisation) of ₹20,471 crore, marking a 19 per cent increase year-on-year. As a result, its net debt-to-EBITDA ratio declined to 1.8x – the lowest in the past decade.
This performance comes despite ongoing capital expenditure across its network of 18 ports and terminals, including the launch of Vizhinjam in Kerala – India’s first global transshipment port – and a new terminal in Colombo, Sri Lanka.
Buoyed by its strong financials and stable business model, APSEZ recently became the first infrastructure company in India to be rated ‘AAA’ by domestic rating agencies. Global rating agencies have assigned it a ‘BBB-‘ rating, in line with India’s sovereign rating, with potential for an upgrade if the country’s sovereign rating improves.
The quantum of the proposed bond buyback has not yet been disclosed.