The fallout from Saturday's surprise attack on Israel by the Palestinian group Hamas reverberated through markets, sending the Adani Ports and Special Economic Zone stock sliding 4 percent. Adani Ports had acquired Israel's Haifa port for $1.2 billion in July, 2022.

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The Port of Haifa is the second largest port in Israel in terms of shipping containers and the biggest in shipping tourist cruise ships.

"We are closely monitoring the action on ground which is concentrated in South Israel, whereas Haifa port is situated in the North. We remain fully alert and prepared with a business continuity plan that will enable us to respond effectively to any eventuality," said Adani Ports spokesperson.

Adani Ports in partnership with local chemicals and logistics group Gadot in July last year won an Israel government's tender to buy the Haifa Port, a major trade hub on Israel's Mediterranean coast.

The ports-to-power conglomerate has vowed to transform the skyline of this Mediterranean city as part of its decision to invest more in the Jewish nation, including opening an artificial intelligence lab in Tel Aviv.

Adani’s company has no holdings in the West, so its entry into Israel is a signal for increased maritime traffic between Asia and Europe, and the major Asian players’ need for a hub in the Mediterranean.

"The acquisition of the Haifa port also comes with a significant amount of real estate. And I promise you that in the years to come we will transform the skyline we see around us," said Adani, the founder and chairman of the group.

"The Haifa of tomorrow will look very different from the Haifa that you see today. With your support - we will deliver on this commitment and do our part to transform this city," he had said.

The overall contribution of Haifa in APSEZ’s numbers stood at 3 percent of the total cargo volume. "For the current fiscal, we have guided for Haifa Cargo volumes range of 10-12 MMT and APSEZ’s total cargo volume guidance of 370-390 MMT," the group said.

In the initial six months of April-September 2023, APSEZ’s total cargo volume was 203 MMT, of which the Haifa share is 6 MMT.

Adani Ports stock performance

Having plunged to as low as Rs 462.45 in February after Hindenburg’s allegations, the stock has recovered 73 percent. At 11:05 am on Monday (October 9), the scrip was trading 3.64 percent lower at Rs 800.50 apiece.

The Hindenburg Research report, published late January, alleged accounting fraud, stock price manipulation and improper use of tax havens by the Adani group companies, triggering a $150 billion rout in the group market capitalisation earlier in 2023.

The group maintained that the report by the US-based short seller was a "deliberate and malicious attempt” aimed at damaging the reputation of the group and generating short-term profit by driving down Adani group stocks.

First Published:Oct 9, 2023 11:45 AM IST