Adani Ports acquires 95% stake in Gopalpur Ports for ₹1,349 Crore

26 Mar 2024 , 12:03 PM

Adani Ports & Special Economic Zone Ltd., India’s largest port operator, has agreed to buy a 95% stake in Gopalpur Ports Ltd. from current shareholders for ₹1,349 Crore, according to an exchange filing on Tuesday.

The acquisition has an enterprise value of ₹3,080 Crore, subject to closing adjustments.

Adani Ports purchased 56% of the 95% share from SP Port Maintenance Pvt. Ltd., a subsidiary of the SP Group, and 39% from Orissa Stevedores Ltd.

This deal is subject to clearance from Odisha’s Commerce and Transport Department and is expected to be finalised in the first quarter of the fiscal year 2025.

Gopalpur Ports Ltd. operates a deep draft, multi-cargo port that handles various types of dry bulk and break bulk cargo. It transports a variety of dry bulk cargoes, including iron ore, coal, limestone, ilmenite sand, and alumina.

In the fiscal year 2023, it handled 7.4 million metric tonnes (MMT) of cargo and has a capacity of 20 MMT. In the current fiscal year, it is projected to handle 11.3 million tonnes of cargo and generate ₹520 Crore in operational income, Adani Ports explained.

Adani Ports added that the investment is consistent with their East Coast to West Coast parity strategy, and Gopalpur Port’s position would provide unparalleled access to Odisha’s mining centres and adjacent states.

Karan Adani, Managing Director of Adani Ports, stated that the acquisition of GPL will contribute to the expansion of the Adani Group’s port network across India, balancing cargo volumes between the east and west coasts, and enhancing the integrated logistics strategy of APSEZ.

He further commented that, from their perspective, Gopalpur Port is well-positioned for significant growth and increased profitability in the financial year 2025. They have already pinpointed opportunities to enhance operational efficiencies and address infrastructure bottlenecks, which would lead to additional value for APSEZ shareholders.

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