Adani Ports To Acquire 95% Stake in Gopalpur Ports for ₹1,349 Crore

On Tuesday, Adani Ports & Special Economic Zone Ltd announced that they have entered into definitive agreements to acquire a 95% stake in Gopalpur Ports Ltd.

Details of the Agreement

On March 26, 2024, Adani Ports & Special Economic Zone (APSEZ) Ltd, an Indian multinational port operator, informed in an exchange filing that the company had signed an agreement to acquire a 95% stake in Gopalpur Port Limited from the existing shareholders for a cash consideration of ₹1,349 crore.

Regarding the same, Adani Ports & Special Economic Zone Ltd stated, “We would like to inform you that the Company has entered into a definitive agreement on March 25, 2024, to acquire a 95% stake of Gopalpur Ports Limited (GPL) from the existing shareholders (56% stake from SP Port Maintenance Private Limited (SP Group) and 39% stake from Orissa Stevedores Limited (OSL)] of GPL.”

Adani Ports & Special Economic Zone Ltd further stated that the equity consideration for a 95% stake is ₹1,349 crore, with an enterprise value of ₹3,080 crore, subject to closing adjustments.

They added in the exchange filing that the acquisition is subject to approval from the Commerce and Transport Department, Government of Odisha. The transaction is expected to be completed by Q1 FY 2025.

Gopalpur Ports Limited is involved in the business of handling different types of dry bulk and break bulk cargo. GPL is a deep draft, multi-cargo port that handles a diverse mix of dry bulk cargo, such as coal, iron ore, ilmenite sand, alumina and limestone. In FY 2023, they handled 7.4 MMT of cargo. Gopalpur Ports Limited has a capacity of 20 MMT, and as of FY 2023, the operational revenue was ₹373 crore.

Adani Ports & Special Economic Zone Ltd said that the investment aligns with the Company’s strategy of East Coast to West Coast equivalence. Gopalpur Ports Limited’s location will allow them unprecedented access to the mining hubs of Odisha and neighbouring states and allow them to expand their hinterland logistics footprint.

Speaking of the acquisition, the Managing Director of Adani Ports, Karan Adani, stated, “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.”

He further added, “In our view, the Gopalpur Port is all set for strong growth and margin expansion in the financial year 2025 with opportunities already identified for achieving higher operational efficiencies and infra debottlenecking, implying further value accretion for APSEZ shareholders.”

About Adani Ports & Special Economic Zone Ltd

Adani Ports and Special Economic Zone Ltd is a part of the globally diversified Adani Group. It is the largest port developer and operator in the country, with 7 ports and terminals on the west coast and 7 on the East coast of India.

On March 26, 2024, the share price of Adani Ports and Special Economic Zone Ltd opened at ₹1,281.60, touching the day’s high at ₹1,308.00, as of 10:09 AM on the NSE.

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