Last month, Adani Ports received approval from the Andhra Pradesh Maritime Board for the acquisition proposal of a 10.4% stake of Gangavaram Port.
GPL own, develop and operate the deep-water port at Gangavaram, Andhra Pradesh, pursuant to a concession agreement on a Build-Own-Operate-Transfer basis with the Government of Andhra Pradesh for a concession period of thirty years from the date of commercial operations and entitled to a further period of 20 years (two periods of 10 years each).
The Port is engaged in the business of handling various types of Dry Bulk and Breakbulk cargo. The Port is a multi-cargo facility and handled 32.81 MMT of cargo in FY 21. It has a capacity of 64 MMT. The operational revenue for the financial year 2020-21 was Rs1,057cr, Adani Ports said in the release.
The acquisition of the Port is in line with the Company’s strategy of East Coast to West Coast parity and will provide access to growth from new hinterland markets as it has coverage in resource-rich and industrial belts in Eastern, Central & Southern India.
The transaction is for a consideration of Rs644.78cr.
On Sensex, Adani Ports closed at Rs749.45 per piece flat compared to the previous closing.