Adani Ports & Special Economic Zone Ltd (Adani Ports) shares will be in focus on Wednesday morning after the Adani group firm announced that its board of directors would meet on Wednesday, January 3, to consider and approve a proposal to issue non-convertible debentures through a public offering, preferential allotment, and/or combination thereof as may be deemed appropriate, or any other eligible securities, subject to regulatory or statutory approvals as may be required.

In a filing with the Bombay Stock Exchange (BSE), "Pursuant to SEBI (Prohibition of Insider Trading) Regulations, 2015, we wish to inform you that the Trading Window for dealing in securities of the Company shall remain closed with effect from 27th December, 2023 till 48 hours after the announcement of the Unaudited Financial Results of the Company for the quarter and nine months ended 31st December, 2023."

In related news, India Ratings and Research (Ind-Ra) confirmed Adani Ports' long-term issuer rating of 'IND AA+'. It assigned 'IND AA+'/Stable to Adani Ports' extra NCDs.

According to India Ratings, Adani Ports maintained its leading position in the Indian ports business with 14 ports, handling around 23.5 percent of the country's total cargo volumes in FY23 (FY22: 23.7 percent). Furthermore, most ports in Adani Ports' portfolio have the freedom to set their own tariffs, which are typically higher than those of competitors, in conjunction with state maritime bodies.

"Additionally, connectivity with the direct freight corridor would help Adani Ports to benefit from the likely structural growth in India's EXIM trade," the rating agency stated.

To offset the governance risk, India Ratings points to the company's robust cash flow production and less reliance on external investment. It, nevertheless, remains a restriction, and any significant impact from regulatory developments that limit its financial flexibility might have a negative influence on the ratings, according to India Ratings. So far in 2023, Adani Ports shares are up 25%. In the last year, the stock has increased by 26%.