NCLT grants Adani Ports approval to buy 58.1% stake in Gangavaram Port

11 Oct 2022 , 10:14 AM

The National Company Law Tribunals in Ahmedabad and Hyderabad have given Adani Ports and Special Economic Zone Ltd (APSEZ) its blessings in order to complete the acquisition of a 58.1% interest in Gangavaram Port Ltd (GPL) through a composite scheme of arrangement. GPL will turn become an entirely owned subsidiary of APSEZ after this equity acquisition.

47.7 million APSEZ shares would be granted to the former GPL promoters as part of the share swap used to acquire the shareholding from D V S Raju and their family. Approximately Rs6,200 crore would be spent to purchase GPL (517 million shares at Rs120 each).

APSEZ released a statement in which it stated that the deal “implies an EV/EBITDA multiple of roughly 7.8x (FY22 EBITDA of Rs796 crore), which is value accretive to APSEZ shareholders from day one itself. By the end of FY22, APSEZ had already purchased 10.4% of the Andhra Pradesh government and 31.5 % from Warburg Pincus.

The port generated revenue of Rs1,206 crore and EBITDA of Rs796 crore at a margin of 66% in FY2022 while handling 30 million metric tonnes of cargo. As of March 2022’s end, GPL had a cash balance of Rs1,293 crore and was debt-free.

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