Billionaire Gautam Adani-run Adani Ports Acquires 95 pc Stake in Gopalpur Port from SP Group for Rs 3,080 crore
Photo : PTI
Billionaire Gautam Adani-run Adani Ports and Special Economic Zone (APSEZ) announced on Tuesday the acquisition of a 95 per cent stake in Odisha’s Gopalpur Port (GPL) for a total enterprise value of Rs 3,080 crore, in a strategic move to bolster its presence on the east coast of India,
According to a press release issued by the company, the deal involves an equity value of Rs 1,349 crore, with an additional contingent consideration of Rs 270 crore, which is anticipated to be paid after 5.5 years, subject to certain conditions.
APSEZ, the largest private port operator in India, is set to purchase a 56 per cent stake in Gopalpur Port from real estate conglomerate Shapoorji Pallonji Group (SP Group), with the remaining 39 per cent stake being acquired from Orissa Stevedores.
Situated on the east coast, Gopalpur Port boasts a handling capacity of 20 million metric tonnes per annum (MMTPA). The Government of Odisha granted a 30-year concession to GPL in 2006, with provisions for two extensions of 10 years each.
“As a deep draft, multi-cargo port, Gopalpur handles a diverse mix of dry bulk cargo, including iron ore, coal, limestone, ilmenite, and alumina. The port plays an important role in supporting the growth of mineral-based industries in its hinterland, like iron & steel, alumina and others. The concessionaire has full flexibility to design and expand the port as per the market demand. GPL has received more than 500 acres of land on lease for development, with an option to receive additional land on lease to meet future capacity expansions,” the company said in a statement.
“The acquisition of Gopalpur Port will allow us to deliver more integrated and enhanced solutions to our customers. Its location will provide us with unprecedented access to the mining hubs of Odisha and neighboring states, enabling us to expand our hinterland logistics footprint. GPL will complement the Adani Group’s pan-India port network, addressing the east coast versus west coast cargo volume parity and strengthening APSEZ’s integrated logistics approach,” said Karan Adani, Managing Director of APSEZ while expressing enthusiasm about the acquisition.
The port is well-connected to its hinterland via National Highway NH16, and a dedicated railway line links the port with the Chennai-Howrah main line. As of 12.20 PM, shares of APSEZ were trading with gains of approximately 1.44 per cent at Rs 1300 per share.
