Adani Ports buys 95% stake in Gopalpur Ports at enterprise value of ₹3,080 crore
Upstox
2 min read • Updated: March 26, 2024, 10:09 AM
Summary
Adani Ports said it will acquire 56% stake held by Shapoorji Pallonji Group and 39% stake owned by Orissa Stevedores Ltd in Gopalpur Ports, in an all-cash deal. The port, located in Ganjam district of Odisha, has a capacity to handle 20 million metric tonnes of cargo per annum. In FY23, it handled 7.4 MMT of cargo and clocked an operational revenue of ₹373 crore.
Adani Ports and Special Economic Zone, the country’s biggest ports operator, has acquired a 95% stake in Gopalpur Ports Ltd (GPL), at an enterprise value of ₹3,080 crore, a regulatory filing stated on Tuesday, March 26.
Of the total stake acquired by Adani Ports, 56% was held by Shapoorji Pallonji Group, and another 39% was owned by Orissa Stevedores Limited.
GPL is the operator of Gopalpur Port, located in Ganjam district of Odisha, on the eastern coast of India. It is a deep draft and multi-cargo port, and handles a diverse mix of dry bulk cargo, including iron ore, coal, limestone, ilmenite sand, and alumina.
“The equity consideration for 95% stake is ₹1,349 crore, with an enterprise value of ₹3,080 crore, subject to closing adjustments,” Adani Ports informed the bourses, adding that the transaction will be executed in the form of an all-cash deal.
GPL, incorporated in 2006, has an operational capacity of 20 million metric tonnes (MMT) per annum. In the fiscal year 2022-23 (FY23), it handled 7.4 MMT of cargo and clocked an operational revenue of ₹373 crore.
In FY24, GPL is estimated to handle about 11.3 MMT cargo and earn an operational revenue of ₹520 crore, the exchange filing said.
The transaction is expected to be completed by Q1 FY25, Adani Ports said. The acquisition requires nod from the Odisha government, it noted.
“The acquisition of Gopalpur Port will allow us to deliver more integrated and enhanced solutions to our customers. Its location will allow us unprecedented access to the mining hubs of Odisha and neighbouring states and allow us to expand our hinterland logistics footprint. GPL will add to the Adani Group’s pan-India port network, east coast vs west coast cargo volume parity and strengthen APSEZ’s integrated logistics approach,” Adani Ports’ managing director Karan Adani said.
The disclosure was made by the company before the market hours. In the early trading hours, the stock edged higher. The shares were valued at ₹1,298.50 on the NSE at 10 am, higher by 1.32% as against the previous day’s close.