HYDERABAD: Adani Ports and Special Economic Zone, India’s largest ports and logistics company, has received approvals from NCLT Ahmedabad and NCLT Hyderabad for acquiring the remaining 58.1 per cent stake in Gangavaram Port Limited (GPL). With this purchase, GPL will become a 100 per cent subsidiary of Adani Ports.
Gangavaram Port is the third largest non-major port in Andhra Pradesh with a 64 MMT capacity established under concession from the Andhra Pradesh government that extends till 2059. It is an all-weather, deep water, multipurpose port capable of handling fully laden super cape size vessels of up to 200,000 DWT. Currently, the port operates 9 berths and has freehold land of 1,800 acres.
The acquisition of GPL is priced at around Rs 6,200 crore. Adani Ports has already acquired 31.5 per cent stake in GPL from Warburg Pincus and another 10.4 per cent from the government of Andhra Pradesh during FY22.
Adani Ports will acquire the remaining stake of 58.1 per cent from DVS Raju & family, the erstwhile promoters of GPL through a share swap arrangement. The deal will result in issuance of around 4.77 crore shares of Adani Ports to the erstwhile GPL promoters.
“The acquisition of GPL is a key milestone in consolidating our position as India’s largest transport utility and in achieving east coast and west coast parity,” said Karan Adani, CEO and Whole-time Director, Adani Ports.
“Gangavaram Port has excellent rail and road network connectivity and is the business gateway to the hinterland spread over eight states. The recent addition of a container handling terminal will enables us to accelerate our growth of cargo volumes,” he said.
Adani Ports will propel Gangavaram Port to a potential cargo volume of 250 MMT. This will boost the pace of industrialization of Andhra Pradesh, he added.
