Adani Ports and Special Economic Zone Limited ("APSEZ"), India's largest port developer, operator and the logistics arm of Adani Group, today announced that the Board of Directors of the Company at its meeting held on June 4, 2019 approved the Shareholders Return Policy to be consistent with the long term strategic growth objectives of the company and in line with said policy has approved buyback of its fully paid up equity shares and dividend for the Financial year 2018-19.
Shareholder Return Policy:
APSEZ's dividend and shareholder return policy is designed to be consistent with the long term strategic growth objectives of the company.
1. APSEZ's policy is of a stable dividend set at 20% to 25% of Profit After Tax ("PAT") to be paid out as dividend or capital return (share buyback) or a combination. The selection of the form of distribution is to optimise return to shareholder.
2. Along with its dividend policy APSEZ also affirms its Net Debt to EBITDA target range of 3.0x to 3.5x.
3. APSEZ has a consistent growth in its free cash flow and thus in certain years, to reward shareholders, APSEZ can declare bonus dividend or capital return or combination of both in addition to the set annual dividend policy.
- Maximum number of fully paid up equity shares to be bought back 3.92 crore equity shares.
- Buyback price per share - Rs.500 for each fully paid equity share payable in cash
- Buyback Mechanism - Proportionate basis through a Tender Offer.
- As per SEBI guidelines, 15% of the buyback offer is reserved for shareholders holding equity shares having market value of not more than Rs. 2,00,000 as on the record date.
- Eligibility for participation in buyback - Shareholders who hold equity shares as on the record date.
- Record date for buyback - 21st June, 2019.
The Board recommended final dividend @ 10 % (Re 0.20) per equity share of Rs. 2/- each fully paid up for the financial year 2018-19 subject to the approval of shareholder at the ensuing Annual General Meeting.
Mr. Karan Adani, Chief Executive Officer and Whole Time Director of APSEZL said, "The Board considering the strong sustainable growth and superior cash flows has approved a new Shareholder return policy and APSEZ will distribute, every year, 20% to 25% of its Profit After Tax ("PAT") either as dividend or share buyback or a combination of both.
FY19 was a landmark year in the history of APSEZ as we achieved a throughput of 200 MMT for the first time. The total shareholder return will be over Rs. 2,000 crores; this includes Rs. 1,000 crores as part of the revised policy with another Rs. 1,000 crores as additional one time return to mark the landmark year.'
Shares of ADANI PORTS AND SPECIAL ECONOMIC ZONE LTD. was last trading in BSE at Rs.425.4 as compared to the previous close of Rs. 423.9. The total number of shares traded during the day was 373269 in over 4663 trades.
The stock hit an intraday high of Rs. 429.6 and intraday low of 417.65. The net turnover during the day was Rs. 158484175.