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Adani Ports tumbles on plan to acquire Adani Agro Logistics from AEL

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Capital Market
Last Updated : Feb 25 2019 | 12:04 PM IST

Adani Ports and Special Economic Zone fell 7.72% to Rs 326.75 at 11:44 IST on BSE after the company said its subsidiary, Adani Logistics, will acquire Adani Agri Logistics from Adani Enterprises in all cash deal.

Meanwhile, the S&P BSE Sensex was up 109.73 points, or 0.31% to 35,981.21.

On the BSE, 5.37 lakh shares were traded in the counter so far compared with average daily volumes of 4.01 lakh shares in the past two weeks. The stock had hit a high of Rs 339.40 and a low of Rs 323.85 so far during the day. The stock hit a 52-week high of Rs 418 on 17 May 2018. The stock hit a 52-week low of Rs 293.95 on 30 October 2018.

Adani Logistics, a 100% subsidiary of Adani Ports And Special Economic Zone, announced its intent to acquire Adani Agri Logistics from Adani Enterprises (AEL). The acquisition will be an all cash deal and is expected to be completed by March 2019. The transaction is proposed at an enterprise value of Rs 1662 crore.

Adani Agri Logistics (AALL) is the pioneer in providing efficient storage through silos and transportation by rail. The company has 1.58 MMT fully contracted capacity with modern agri infrastructure of 7 trains, 28 storage / handling infrastructure facilities across 10 states. AALL has long term (20-30 year) guaranteed offtake contracts on use or pay basis with 70%+ EBITDA margins. AALL targets to double infrastructure capacity in the next 3 years and tap the new 12.5 MMT infrastructure market as well as opportunities such as conventional storage conversion, among others. Combined business would also benefit from leveraging significant opportunity for handling multiple commodities and transportation, the company said in a statement.

On a consolidated basis, net profit of Adani Ports & Special Economic Zone rose 41.70% to Rs 1408.60 crore on 5.02% rise in net sales to Rs 2823.91 crore in Q3 December 2018 over Q3 December 2017.

Adani Ports and Special Economic Zone, a part of globally-diversified Adani Group, is the largest port developer and operator in India.

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First Published: Feb 25 2019 | 11:42 AM IST

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