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Adani Infra (India) Limited has signed a pact to acquire a 30 per cent stake in construction company PSP Projects Limited from its existing promoters for Rs 685 crore in an all-cash deal. PSP projects was involved in the construction of the Surat Diamond Bourse, the world’s biggest office complex, with a contract worth Rs 1,575 crore and 66 lakh square feet of built-up area.
The Adani Group firm will make an open offer to buy an additional 26 per cent stake from rest of the shareholders as per the Sebi norms, the firm informed stock exchanges on Tuesday.
In the current financial year, this is the group’s 11th acquisition or investment made in a non-group entity or asset. Other past notable acquisitions include Orient Cement, Penna Cements and Essar Transco and ITD Cementation, all at different stages of completion (See chart).
The statement said Adani Infra has agreed to acquire up to 1,19,19,353 equity shares of the company held by Prahaladbhai Patel, one of the promoters of the company, under the share purchase agreement (SPA) inked on Tuesday.
After the completion of the transaction and the open offer, Adani Infra will acquire joint control over PSP Projects along with the Prahaladbhai Patel, Pooja Patel, Sagar Patel, Shilpaben Patel, PSP Family Trust, PPP Family Trust, and SSP Family Trust (existing promoter group) and will be classified as one of the promoters of the company.
To that effect, upon completion of the transaction, the board of PSP Projects shall be reconstituted to include the directors nominated by Adani Infra. The existing promoter group, PSP Projects, holds 60.14 per cent of the paid-up equity share capital of the company.
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PSP Projects’ earlier reported revenue was at Rs 578 crore and earnings before interest, taxes, depreciation, and amortization (ebitda) of Rs 39 crore for the second quarter of the financial year 2024-25 (Q2 FY25).
PSP Projects is a construction company with services across industrial, institutional, government, government residential, and residential projects in India.
Adani Group so far has not commented on the deal and its rationale. The group in October said it will acquire a controlling stake in ITD Cementation, which brings EPC expertise to the group. PSP Projects may help strengthen construction capabilities for the group, which has presence across realty and infrastructure.
On Tuesday, PSP Projects’ shares listed on the Bombay Stock Exchange (BSE) closed at Rs 671.75. The company’s total market cap stands at Rs 2,662.94 crore.
Adani Group's acquisitions in FY24
Company : ADANI ENTERPRISE,ADANI PORTS AND,AMBUJA CEMENTS,ADANI TOTAL GAS,ACC LTD,ADANI GREEN ENER,ADANI WILMAR LTD,NEW DELHI TELEVI,ADANI POWER LTD,ADANI ENERGY SOL Apply to - Acquirer
Dates : Custom(January 1 2024, November 19 2024) Apply to - Announced Date
Deal Status : Pending, Completed
Deal Type : M&A, Investment
Data does not include deals between group companies
Source Bloomberg
Compiled by BS Research Bureau
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