1 min read.Updated: 25 Aug 2021, 09:43 AM ISTLivemint
Gangavaram Port, located in Andhra Pradesh, is engaged in the business of handling various types of dry & break bulk cargo
Adani Ports on Tuesday announced the approval of proposal of acquisition of 10.4% stake of Gangavaram Port (GPL) by the company from Government of Andhra Pradesh. The consideration for proposed acquisition of 10.4% equity stake of GPL is ₹644.78 crore and the transaction is expected to be completed within 1 month.
“The company has received letter/order from Andhra Pradesh Maritime Board dated 23rd August, 2021 received on 24th August, 2021 intimating the approval of proposal of acquisition of 10.4% stake of GPL by the company from Government of Andhra Pradesh," Adani Ports said in an exchange filing late Tuesday.
The acquisition is in line with the company's strategy of East Coast to West Coast parity and will provide an access to growth from new hinterland markets as it has coverage in resource rich and industrial belt in Eastern, Central & Southern India, it said.
The acquisition is subject to approvals under applicable laws, including approval of the Competition Commission of India (CCI). The consideration is ₹644.78 crore subject to closing adjustment, if any.
Gangavaram Port, incorporated in September 2001, is engaged in the business of handling various types of dry bulk and break bulk cargo. It is a multi-cargo facility and handled 32.81 MMT of cargo in FY21. It has a capacity of 64 MMT. The operational revenue for the financial year 2020-21 was ₹1,057 crore.
Shares of Adani Ports surged more than 2% higher to ₹713 per share on the BSE in Wednesday's opening deals. Adani Ports and Special Economic Zone (SEZ) Ltd, part of Gautam Adani-led conglomerate Adani Group, is a leading integrated ports and logistics company in India.