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Adani Ports and Special Economic Zone fell more than 10 per cent after the announcement that it plans to raise funds aggregating up to Rs 10,000 crore. The announcement was made along with the 2015-16 financial results announcements.
Considering the company's share price at Rs 213 per share, a total of 46.9 crore share amounting to Rs 10,000 crore is expected to be issued. The company currently has 207 crore shares outstanding. The addition of nearly 47 crore new shares is expected to dilute the earnings of the current shareholders.
Earlier, the company recorded a strong revenue of Rs 7,255.7 crore for the fiscal year ending March 2016, 18 per cent higher than the Rs 6,152 crore for the year ending March 2015. Profit after tax (PAT) for the year ending March 2016 was Rs 2867.4 crore. Thus, the earnings per share stand at Rs 13.85 for the current fiscal.
The addition of near 47 crore share after approval from the shareholders is expected to cut the earnings per share by nearly 20 per cent. If the additional shares are taken into consideration, the earnings per share of 2015-16 drops to Rs 11.29.
The consolidated revenue and profits of APSEZ grew at a compounded average annual growth rate of 22 and 27 per cent, respectively between 2011-12 and 2015-16.
The stock price has reached a peak price of Rs 370 in August 20, 2015 before falling more than half to reach Rs 178 in February 2016.
The last trading price of APSEZ was ₹ 207 per share.
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