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Adani Ports and SEZ, part of the Adani Group, has received the approval of the National Company Law Tribunal (NCLT) to acquire the remaining 58.1% stake in Gangavaram Port Limited (GPL), making the port into a 100% subsidiary of the group.
Gangavaram port is an all-weather, deep-water port in Andhra Pradesh. It is the second largest non-major port in the state & third largest non-major port in the country with nine berths, 1,800 acres of freehold land & handling capacity of 64 MMT. It handles a broad range of dry and bulk commodities like coal, iron ore, bauxite, fertilizer, etc.
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Early in March 2021, Adani Ports acquired the 31.5% stake in Warburg Pincus in the port. Following the acquisition, Adani announced the acquisition of an additional 58.1% stake in the port from D.V.S. Raju and the family, pending regulatory approval. Ultimately in August 2021, he acquired the balance of 10.4% from the Andhra Pradesh government for Rs 645 crores.
The acquisition of D.V.S. Raju and the family's stake has now been approved by the NCLT at Ahmedabad and Hyderabad. The deal will be completed via a share swap, where 58.1% in GPL will be acquired by issuing roughly 47.7 million shares in Adani Ports.
This acquisition is priced at around Rs 6,200 crores. The acquisition will convert GPL into a 100% subsidiary of Adani Ports, improving the company's operational efficiency, pan-India footprint & logistics integration to deliver high growth for the company.
“Acquisition of GPL is a key milestone in consolidating our position as India’s largest transport utility and in achieving East Coast and West Coast parity. Gangavaram Port has excellent rail and road network connectivity and is the business gateway to the hinterland spread over eight states. The recent addition of a container handling terminal will enable us to accelerate our growth of cargo volumes,” Karan Adani, CEO, and WTD at Adani Ports said.
The shares of Adani Ports currently trades at around Rs 813.85 per share.
Article by Aman Agarwal.
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