Adani Ports and Special Economic Zone has received approvals from National Company Law Tribunals (NCLT) Ahmedabad and NCLT Hyderabad for acquiring the remaining 58.1% stake in Gangavaram Port through the composite scheme of arrangement.
With this stake purchase, Gangavaram Port (GPL) will become a 100% subsidiary of Adani Ports. This stake purchase is through a share swap arrangement, said the company.Gangavaram Port is located in the northern part of Andhra Pradesh next to Vizag Port. It is the third largest non-major port capable of handling fully laden super cape size vessels with nine berths and free hold land of 1800 acres. The port is a gateway for a hinterland spread over 8 states across eastern, southern and central India.
In FY22, the port handled cargo volumes of around 30 million metric tonne (MMT), generated revenue of Rs 1,206 crore and EBITDA of Rs 796 crore, which resulted in EBITDA margin of 66%. The acquisition of GPL is priced at around Rs 6,200 crore.
Karan Adani, CEO and whole-time director of APSEZ said, Acquisition of GPL is a key milestone in consolidating our position as India's largest transport utility and in achieving East Coast & West Coast parity. Gangavaram Port has excellent rail & road network connectivity and is the business gateway to the hinterland spread over eight states. The recent addition of a container handling terminal will enable us to accelerate our growth of cargo volumes.
Adani Ports & Special Economic Zone is in the business of development, operations and maintenance of port infrastructure (port services and related infrastructure development) and has linked multi product Special Economic Zone (SEZ) and related infrastructure contiguous to port at Mundra.
The company's consolidated net profit dropped 16.86% to Rs 1,091.56 crore in Q1 FY23 as against Rs 1,312.99 crore recorded in Q1 FY22. Revenue from operations declined 0.71% to Rs 4,637.95 crore in Q1 FY23 from Rs 4,671.19 crore reported in Q1 FY22.
Shares of Adani Ports & Special Economic Zone rose 0.39% to Rs 811 on the BSE.
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