Adani Ports to get LoI for Tajpur deep sea port; stock among top Nifty gainers

Shares of Adani Ports & Special Economic Zone gained over two percent at open on September 22, after the company reportedly said it will soon get the Letter of Intent (LoI) from West Bengal government to develop the Tajpur deep sea port.

The share was quoting Rs 945 apiece on the NSE at 10:15 am, while the benchmark Nifty 50 index was in the red zone. It was among the most active shares on NSE with volumes of 2,836,090.

The state government said the greenfield project will entail a total investment of Rs 25,000 crore ($3.1 billion), of which Rs 15,000 crore will go towards port development and the rest toward building related infrastructure, it said.

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West Bengal government expects the port will create 25,000 direct jobs and over 100,000 indirect jobs.

Meanwhile, brokerages are positive on the stock. ICICI Direct has a Buy rating on the stock. It has a target price of Rs 1150. “West Bengal is offering 1000 acres of land with a concession of 99 years against the usual 30-35 years”, said the brokerage, citing it as a big positive.

Edelweiss has a Buy call on the stock, with a target price of Rs 960. “Given a range break out on monthly chart after 18 months of consolidation with rising volume and open interest” according to the brokerage firm.

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