Adani Ports acquires 49.38% stake in Indian Oiltanking for Rs 1,050 cr

10 Nov 2022 , 04:38 PM

This agreement also includes acquisition of an additional 10% equity stake in IOT Utkal Energy Services, a 71.57% subsidiary of IOTL. IOTL is one of Indias largest developer and operator of liquid storage facilities. Over the last 26 years, IOTL has built a network of six terminals across five states with a total capacity of 2.4 Mn KL (owned capacity of 0.5 Mn KL and BOOT capacity of 1.9 Mn KL) for storage of crude and finished petroleum products. The owned facilities include Navghar terminal in Maharashtra, Raipur terminal in Chhattisgarh and Goa terminal. The BOOT terminal with Indian Oil Corporation Ltd (IOCL) is at Paradip (Odisha) and O&M contracts with IOCL are at JNPT (Maharashtra) and Dumad (Gujarat). The company also has a biogas plant of 15 TPD capacity in Namakkal (Tamil Nadu). IOTL is on a growth spree given the increasing demand for oil products in the country. The company recently signed a 25-year BOOT contract with Numaligarh Refinery Ltd for the construction, operation, and maintenance of 0.6 million killolitres (Mn KL) crude storage tanks at the Paradip Port The majority of IOTLs tank capacity is contracted by reputed PSUs and oil majors. With around 80% of IOTLs capacity under take-or-pay contract, there is a good visibility on the future cash flows of the company. In FY22, IOTLs revenue and EBITDA were Rs 526 crore and Rs 357 crore, respectively. The acquisition price of Rs 1,050 crore implies an EV/EBITDA multiple of approximately 8x on FY22 numbers. Karan Adani, CEO and whole-time director, APSEZ, said: With this acquisition, APSEZs oil storage capacity jumps 200% to 3.6 Mn KL, making it Indias largest third-party liquid storage company. This ties well with our ambition to become the largest transport utility globally. This stake purchase is also well aligned with our strategy of diversifying the cargo mix with focus on products and services having higher realisation and margins. The deal will further strengthen our strategic partnership with IOCL, a key stakeholder and Indias largest refiner and customer of oil storage tanks.? Adani Ports & Special Economic Zone is engaged in the business of development, operations and maintenance of port infrastructure (port services and related infrastructure development) and has linked multi product Special Economic Zone (SEZ) and related infrastructure contiguous to Port at Mundra. The companys consolidated net profit surged 68.53% to Rs 1,677.48 crore on 32.83% jump in revenue from operations to Rs 5210.80 crore in Q2 FY23 over Q2 FY22. The scrip advanced 0.15% to Rs 892.55 on the BSE. Powered by Capital Market – Live News