Adani Ports on October 10 said that the National Company Law Tribunal (NCLT), Ahmedabad Bench has sanctioned the composite scheme of arrangement between Visakhapatnmam's Gangavaram Port and Adani Ports & Special Economic Zone (SEZ) and Adani Gangavaram Port.
The company, in a statement, added that it has received approvals from NCLT Ahmedabad and NCLT Hyderabad for acquiring the remaining 58.1 percent stake in Gangavaram Port Limited (GPL) through the composite scheme of arrangement. With this stake purchase, GPL will become a 100 percent subsidiary of APSEZ.
The acquisition of GPL is priced at around Rs 6,200 crore (517mn shares at Rs 120/share) and the stake purchase is through a share swap arrangement, it added.
GPL is located in the northern part of Andhra Pradesh next to Vizag Port.
Ports play a major role in shaping the future. Through APSEZ's acquistion of GPL, the Adani Group will greatly expand its pan-India cargo presence.
It is the second largest non-major port in Andhra Pradesh with a 64 MT capacity established under concession from Government of Andhra Pradesh (GoAP) that extends till 2059.
Further, GPL is an all-weather, deep water, multipurpose port capable of handling fully laden super cape size vessels of up to 2,00,000 DWT, the statement said.
In FY22, the port handled cargo volumes of around 30 million metric tonnes, generated revenue of Rs 1,206 crore and EBITDA of Rs 796 crore, which resulted in EBITDA margin of 66 percent, Adani Ports noted. GPL is a debt-free company with a cash balance of Rs 1,293 crore as of March 2022-end.
Commenting on the occasion, Karan Adani, CEO and Whole-time Director, 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”.
APSEZ has already acquired 31.5 percent stake in the company from Warburg Pincus and another 10.4 percent from the Government of Andhra Pradesh during last fiscal year. The remaining 58.1 percent stake will be acquired from DVS Raju & family, Adani Ports added.
Meanwhile, shares of Adani Ports on Monday (October 10) ended 1.10 percent lower at Rs 807.85 apiece on BSE.
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