Adani Ports and Special Economic Zone Ltd (APSEZ) 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 stake purchase, GPL will become a 100 per cent subsidiary of APSEZ.
The acquisition is priced at around Rs 6,200 crore ($753.7 million).
APSEZ has already acquired 31.5 per cent stake in the company from Warburg Pincus and another 10.4 per cent from the Government of Andhra Pradesh during financial year (FY) 2022.
“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,” said Karan Adani, CEO and Whole-time Director, APSEZ.
“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 enable us to accelerate our growth of cargo volumes.”
Gangavaram Port is located in the northern part of Andhra Pradesh next to Vizag Port.
It is the third largest non-major port in Andhra Pradesh with a 64 million metric tonnes capacity, able to handle fully laden super cape size vessels of up to 200,000 DWT.
Currently, the port operates 9 berths and has freehold land of approximately 1,800 acres.
The port handles a diverse mix of dry and bulk commodities and is the gateway port for a hinterland spread over eight states across eastern, southern and central India.
In FY22, the port handled cargo volumes of around 30 million metric tonnes, generated revenue of Rs 1,206 crore ($146.6 million) and EBITDA of Rs 796 crore ($96.7 million).
Adani Ports and Special Economic Zone Ltd APSEZ registered a 16 per cent decline in consolidated net profit for the first quarter of FY23, despite record EBITDA results and unchanged financial outlook.