Adani Ports in talks for acquisition of SP Group's Gopalpur Ports in Odisha

Adani Ports & Special Economic Zone is pursuing a potential Rs 1,100-1,200 crore acquisition of Gopalpur Ports from Shapoorji Pallonji Group, which would bolster its presence along the eastern coast

Adani Ports & Special Economic Zone (SEZ), one of the largest maritime companies in India by market capitalisation, is actively engaged in advanced discussions to acquire Gopalpur Ports in Odisha from Shapoorji Pallonji (SP) Group, according to a report by The Economic Times (ET). The potential deal is valued at Rs 1,100-1,200 crore in equity and would help Adani Port bolster its presence facilities along both the eastern and western maritime fronts.

This prospective acquisition, if successful, will mark Adani Ports' sixth venture into multi-purpose facilities along the eastern coast. It currently boasts a capacity of around 247 million tonnes (MT). The due diligence process is underway, according to sources familiar with the ongoing negotiations, as reported by ET.

 

Gopalpur Ports is predominantly owned by SP Ports Maintenance, holding a 56 per cent stake, with the remainder owned by Orissa Stevedores. SP Ports Maintenance, in turn, is wholly owned by SP Imperial Star, acting as its guarantor.

The port's enterprise is reportedly valued at $600-650 million (Rs 5,000 crore), with SP Group's equity value at $240-260 million (Rs 2,000 crore). Care Edge, a credit rating firm, reported the port's long-term bank facilities amounted to Rs 1,432 crore as of February 2023.

Despite the advanced talks, there is no assurance that negotiations will culminate in a finalised transaction.

This news comes amid Adani Group's market capital gains following the United States' government declaring the Hindenburg allegations against Adani "irrelevant".

The combined market valuation of all 10 Adani stocks rose above Rs 14.5 trillion on Wednesday. Adani Total Gas and Adani Green Energy saw the highest gains of 20 per cent and 16 per cent, respectively. On Wednesday, Adani Ports & SEZ also went up seven per cent, reaching its record high of Rs 1,082 per share on BSE. According to a report by MoneyControl, analysts at Citi have stated that the company has continued to deliver high performance and its dominance in India's port and logistics space is growing.