PSP Projects dropped 8.60% to Rs 614 amid allegations that US prosecutors have indicted Gautam Adani and his associates for a $250 million bribery scheme.
This comes a day after Adani Infra (India) announced a significant stake purchase in PSP Projects.
Adani Infra (India), Adani Groups PMC arm, signed definitive agreements to acquire up to 30.07% stake from PSP Project's existing promoter - Prahladbhai S. Patel. Presently, Prahladbhai S Patel and Family own 60.14% stake in the company.
Meanwhile, Adani Infra (India) has launched an open offer to acquire additional 1,03,06,866 shares, or 26% stake in PSP Projects from public shareholders. The offer price is set at Rs 642.06 per share, valuing the deal at approximately Rs 662 crore. This acquisition, along with a simultaneous share purchase agreement with the existing promoter, will result in Adani Infra and the existing promoters holding equal stakes and joint control of the company.
Existing promoters hold a 60.14% interest in PSP Projects. Prabhladbhai S Patel holds 47.76% shares, of which he is selling 30.07%.
PSP Projects will continue to be led by existing chairman, MD & CEO - Prahladbhai Patel. As part of the transaction, Adani Infra will get equal rights and representation on the board.
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PSP Projects is an EPC company in India with an order book of Rs 6,546 crore. It has executed marquee projects such as Surat Diamond Bourse, Kashi Vishwanath Dham, Palladium Mall (Ahmedabad), among others.
Adani Infra (India) is the PMC arm of Adani Portfolio, which is owned 100% by the Adani Family.
The partnership will aim to propel PSP Projects into becoming one of the leading EPC companies in India, on the back of accelerated growth in Indias infrastructure development. Adani Portfolio of companies is looking to invest $100 billion as capex over the course of next decade, PSP Projects said in a statement.
PSP Projects is a diversified construction company offering a wide range of services across industrial, institutional, government, and residential sectors. On a consolidated basis, net profit of PSP Projects declined 73.47% to Rs 10.22 crore while net sales declined 5.44% to Rs 585.97 crore in Q2 September 2024 over Q2 September 2023.
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