Adani Infra seeks CCI nod for majority stake in construction firm PSP Projects

Billionaire Gautam Adani-led Adani Infra has sought approval from the fair trade regulator Competition Commission of India (CCI) for acquiring a majority stake in PSP Projects Ltd.

Adani Infra, a unit of Adani group's flagship firm Adani Enterprises.

PSP Projects, which has industrial, institutional, residential and luxury projects like the Surat Diamond Bourse, had an order book of ₹6,546 crore as of September 2024.

"The proposed transaction involves the acquisition by the acquirer (Adani Infra India) of equity shares of the target (PSP Projects) from Prahaladbhai S Patel (seller).

"Public shareholders by way of an open offer, such that, post-closing of the initial acquisition and open offer, the acquirer and the seller and other existing promoters would hold equal shareholding," said a notice filed with the Competition Commission of India (CCI) on Monday.

The proposed transaction has been notified under Section 6(2) read with Section 5(a) of the Competition Act, 2002, the company said.

Section 6(2) of the Competition Act, pertains to any person or enterprise to notify the CCI before entering into a combination, while Section 5(a) defines a combination as the acquisition of one or more enterprises, or the merger or amalgamation of enterprises, that exceeds a certain threshold.

In its submission to the CCI for the assessment of the proposed transaction, Adani Infra said the transaction will not have any impact on the market dynamics of any market/segment in India or cause an appreciable adverse effect on competition in any plausible relevant markets.

Accordingly, the definition of relevant market may be left open, the CCI may consider markets based on the vertically linked activities of the parties, such as real estate development, airport operations, and cement manufacturing and infrastructure services, for competition assessment, it said.

In November last year, Gautam Adani's Adani Infra said it will buy a 30.07% stake in construction firm PSP Projects for ₹685.36 crore as it looks to consolidate its construction capabilities.

Existing promoters hold a 60.14% interest in PSP Projects. Prabhladbhai S Patel holds 47.76% shares, of which he is selling 30.07%.

Ahmedabad-based Adani Group has in recent months done a series of acquisitions to strengthen its footprint across multiple sectors.

After the stake sale, the existing promoters and Adani Infra will each hold a 30.07% stake.

Further, the open offer for an additional 26% stake that Adani Infra will have to make to minority shareholders of PSP will make the conglomerate the single largest shareholder in the firm.