Adani goes on a buying spree in Telugu states

Hyderabad: The Adani group is on an acquisition spree in the Telugu states and the latest target is a stake in the city-based electric bus manufacturer Olectra.

The Adani group, which made a foray into the fast-growing segment of electric vehicles a few years ago, has set its eyes on Olectra Greentech, in which a majority stake is held by the Megha group. Sources privy to the developments told Deccan Chronicle that the Adani group will take 10 per cent equity in Olectra but the deal value is yet to be known.

Olectra was launched by Goldstone Infratech with technical collaboration from the BYD group of China. The name of the company was changed to Olectra Greentech and its share price closed at Rs.177.90 on Thursday.

On Wednesday, the Adani group announced the purchase of 31.5 per cent stake in Gangavaram port. Though the Adani group made repeated attempts to get into the most valuable project, it did not materialise as the original promoters, D.V.S. Raju and family, were said to have fixed a higher value, approximately Rs.10,000 crore.

The Adani group realised its dream, however, by buying 31.5 per cent stake from the international venture capitalist Warburg Pincus for Rs.1,954 crore, bringing down the value of the company to just about Rs.5000 crore.

"There is every reason for the original promoters to keep the company at a higher value," sources in port sector pointed out. Gangavaram with its locational advantage and deeper levels is considered to be least expensive on maintenance.

On the financial front, the port is debt-free and earned a net profit of Rs.516 crore in 2019-20 fiscal against a turnover of '1,082 crore. The company also has cash reserves of nearly Rs.500 crore.

Earlier, the Adani group had bought a 75 per cent stake in Krishnapatnam port.