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Adani Ports to acquire additional 58.1% stake in Gangavaram Port

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Capital Market
Last Updated : Mar 23 2021 | 9:31 AM IST
Adani Ports & Special Economic Zone (APSEZ) is acquiring the 58.1% stake held by DVS Raju and family in Gangavaram Port (GPL). The acquisition is valued at Rs. 3,604 crore and subject to regulatory approvals.

APSEZ had announced acquisition of Warburg Pincus's 31.5% stake in GPL on 03 March 2021 and together with this acquisition, APSEZ would have 89.6% stake in GPL.

GPL is located in the northern part of Andhra Pradesh next to Vizag Port. It is the second largest non-major port in Andhra Pradesh with a 64 MMT capacity established under concession from Government of Andhra Pradesh (GoAP) that extends till 2059. It is an all-weather, deep water, multipurpose port capable of handling fully laden super cape size vessels of up to 200,000 DWT. Currently, GPL operates 9 berths and has free hold land of ~1,800 acres. With a master plan capacity for 250 MMTPA with 31 berths, GPL has sufficient headroom to support future growth.

GPL handles a diverse mix of dry and bulk commodities including Coal, Iron Ore, Fertilizer, Limestone, Bauxite, Sugar, Alumina, and Steel. GPL is the gateway port for a hinterland spread over 8 states across eastern, southern and central India.

In FY20, GPL had a cargo volume of 34.5 MMT, revenue of Rs. 1,082 crore, EBITDA of Rs. 634 crore (59% margin) and PAT of Rs. 516 crore GPL is debt free with a cash balance of over Rs. 500 crore.

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First Published: Mar 23 2021 | 9:07 AM IST

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