Brokerages bullish on Adani Ports post acquisition of Snowman Logistics

The sale to ADSEZ is part of Gateway's plan to divest its non-core assets, deleverage its balance sheet, and fund future capital expenditure plans in the rail segment.

In a deal expected to benefit both companies, Adani Ports and SEZ (ADSEZ) acquired India’s largest cold chain company Snowman Logistics from Gateway Distriparks.

The deal for a 40.25 per cent stake in Snowman for Rs 296 crore pegs the enterprise value at 11.6x its 2020-21 operating profit.

ADSEZ’s third logistics-related acquisition this year comes at a premium, largely due to the potential of the cold chain business and Snowman’s aggressive plans. The company plans to double the capacity over the next five years at a cost of Rs 580 crore. The acquisitions and expansion are in line with ADSEZ’s