Adani NQXT Acquisition: Positive Diversification, Says Fitch Ratings

28 Apr 2025 CW Team

The global rating agency has described the acquisition as "credit neutral" but acknowledged its positive strategic implications. The deal, announced on April 17, 2025, involves APSEZ issuing new equity shares to the current shareholders of NQXT, who are part of the same promoter group as Adani Ports. The acquisition is still awaiting approval from shareholders and regulators.

Fitch believes the acquisition will not impact APSEZ’s financial health and expects the company’s gross leverage to remain stable at around 3.0 times between FY26 and FY29. The transaction is expected to significantly increase APSEZ’s global earnings contribution, rising from 4% to 10%.

Fitch noted that the deal will slightly increase the share of coal in the company’s cargo mix, though this is expected to decrease over time as container and other non-coal segments grow faster. Operationally, the impact will be limited as APSEZ already operates the NQXT terminal, which handles 35 million tonnes of coal annually and runs at 70% capacity.

The acquisition also requires very little capital expenditure in the near future, and the terminal’s long-term take-or-pay contracts and a lease life of 85 years provide stable cash flows for Adani Ports. Fitch added that there is minimal refinancing risk, as NQXT has no major debt repayments until 2030, and its debt features limits on borrowing and controlled cash outflows, helping maintain financial discipline.

While Fitch did not change APSEZ’s credit rating, it emphasised that the acquisition strengthens the company’s global business profile.

(ANI)

Fitch Ratings has stated that Adani Ports and Special Economic Zone Limited’s (APSEZ) acquisition of the North Queensland Export Terminal (NQXT) will support the company’s international growth strategy, marking a positive step for long-term global expansion. The global rating agency has described the acquisition as credit neutral but acknowledged its positive strategic implications. The deal, announced on April 17, 2025, involves APSEZ issuing new equity shares to the current shareholders of NQXT, who are part of the same promoter group as Adani Ports. The acquisition is still awaiting approval from shareholders and regulators. Fitch believes the acquisition will not impact APSEZ’s financial health and expects the company’s gross leverage to remain stable at around 3.0 times between FY26 and FY29. The transaction is expected to significantly increase APSEZ’s global earnings contribution, rising from 4% to 10%. Fitch noted that the deal will slightly increase the share of coal in the company’s cargo mix, though this is expected to decrease over time as container and other non-coal segments grow faster. Operationally, the impact will be limited as APSEZ already operates the NQXT terminal, which handles 35 million tonnes of coal annually and runs at 70% capacity. The acquisition also requires very little capital expenditure in the near future, and the terminal’s long-term take-or-pay contracts and a lease life of 85 years provide stable cash flows for Adani Ports. Fitch added that there is minimal refinancing risk, as NQXT has no major debt repayments until 2030, and its debt features limits on borrowing and controlled cash outflows, helping maintain financial discipline. While Fitch did not change APSEZ’s credit rating, it emphasised that the acquisition strengthens the company’s global business profile. (ANI)

Building Material

11 Dec 2025

Suraj Estate Wins Euromoney Award for India’s Best Residential Developer

"Suraj Estate Developers Limited has received the Euromoney Real Estate Award 2025 for ‘India’s Best Residential Developer’, positioning the company among globally benchmarked leaders in the sector. The recognition reflects its four-decade legacy in delivering high-quality residential and redevelopment-led projects across South Central Mumbai. The Euromoney Real Estate Awards, presented by the London-based Euromoney magazine, are widely regarded as one of the most credible global assessments of performance in real estate, banking and finance. Winners are selected through surveys of inte..

Building Material

11 Dec 2025

Lloyds Metals, Tata Steel Sign MoU to Explore Strategic Collaboration

"Lloyds Metals and Energy Limited has signed a non-binding Memorandum of Understanding with Tata Steel Limited to evaluate potential areas of strategic cooperation across mining, logistics, pelletisation and steelmaking. The MoU was signed by B Prabhakaran, Managing Director of Lloyds Metals, and Mr T V Narendran, CEO and Managing Director of Tata Steel. The partnership framework aims to leverage the natural operational synergies between both companies and assess opportunities in greenfield steel projects, iron ore mining, slurry pipeline infrastructure, pellet manufacturing in iron ore–ric..

Building Material

11 Dec 2025

IndiaAI, Gujarat Govt Host Regional Conclave Ahead of 2026 AI Summit

The IndiaAI Mission under the Ministry of Electronics and Information Technology, along with the Government of Gujarat and IIT Gandhinagar, convened a Regional Pre-Summit Event at Mahatma Mandir, Gandhinagar. The initiative is part of the build-up to the India–AI Impact Summit 2026, scheduled for 15–20 February 2026 at Bharat Mandapam, New Delhi. The conclave brought together senior policymakers, technology leaders, researchers and industry practitioners to examine how AI can accelerate economic, digital and social transformation across sectors. The programme focused on the overarching th..