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Adani Ports gains on concluding acquisition of 10.4% stake of Gangavaram Port

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Capital Market
Last Updated : Sep 23 2021 | 9:31 AM IST

Adani Ports rose 1.07% to Rs 752.70 after the company said that it has signed the appropriate transaction documents and simultaneously completed the acquisition of 10.4% stake of Gangavaram Port from Government of Andhra Pradesh.

Gangavaram Port (GPL) is engaged in the business of handling various types of dry bulk and break bulk cargo. GPL is a multi-cargo facility and handled 32.81 MMT of cargo in FY21. It has a capacity of 64 MMT. The operational revenue for financial year 2020-21 was Rs 1,057 crore.

The acquisition is in line with company's strategy of east coast to west coast parity and will provide an access to growth from new hinterland markets as it has coverage in resource rich and industrial belt in Eastern, Central & Southern India.

The acquisition has been made for a cash consideration of Rs 644.78 crore.

In March this year, the company had announced the acquisition of Windy Lakeside Investment's (an affiliate of Warburg Pincus) 31.5% stake in GPL.

In last week of March 2021, the company had announced the acquisition of 58.1% stake held by DVS Raju and family in GPL. The acquisition was valued at Rs 3,604 crore.

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Last month, Adani Ports said that its proposal to acquire 10.4% stake for Rs 644.78 crore of Gangavaram Port from the Andhra Pradesh government has received approval from the Andhra Pradesh Maritime Board.

On 20 September 2021, Adani Ports received approval of Competition Commission of India for the said acquisition.

Adani Ports and Special Economic Zone (APSEZ), a part of globally diversified Adani Group, has evolved from a port company to ports and logistics platform for India.

The company reported 77% jump in consolidated net profit to Rs 1,342 crore on a 99% increase in consolidated revenue to Rs 4,557 crore in Q1 FY22 over Q1 FY21.

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First Published: Sep 23 2021 | 9:17 AM IST

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