The Adani Ports and Special Economic Zone (APSEZ) Ltd. is buying the 58.1 per cent stake held by D.V.S. Raju and household in the Gangavaram Port Limited (GPL).
The acquisition is valued at Rs 3,604 crore and topic to regulatory approvals. APSEZ, the transportation arm of Adani Group, had introduced acquisition of Warburg Pincus’s 31.5 per cent stake in GPL on March 3 and along with this acquisition, APSEZ would have 89.6 per cent stake in GPL.
GPL is situated in the northern a part of Andhra Pradesh subsequent to Vizag Port. It is the second largest non-major port in Andhra Pradesh with a 64 MMT capability established below concession from the Government of Andhra Pradesh (GoAP) that extends until 2059. It is an all-weather, deep water, multipurpose port able to dealing with absolutely laden tremendous cape dimension vessels of up to 200,000 DWT.
Currently, GPL operates 9 berths and has free maintain land of 1,800 acres. With a grasp plan capability for 250 MMTPA with 31 berths, GPL additionally has headroom to help future progress.
GPL handles a various mixture of dry and bulk commodities together with Coal, Iron Ore, Fertilizer, Limestone, Bauxite, Sugar, Alumina, and Steel. GPL is the gateway port for a hinterland unfold over eight states throughout jap, southern and central India.
The acquisition will assist GPL to profit from APSEZ’s pan-India footprint, logistics integration, buyer centric philosophy, operational efficiencies and robust stability sheet to ship a mixture of excessive progress by enhancing market share and add extra cargo sorts and improved margins and returns.
In FY20, GPL had a cargo quantity of 34.5 MMT, income of Rs 1,082 crore, EBITDA of Rs 634 crore (59 per cent margin) and PAT of Rs 516 crore GPL is debt free with a money stability of over Rs 500 crore.
The firm has a paid up share capital of 51.7 crore shares of which 58.1 per cent is owned by DVS Raju and Family (Promoter), 10.4 per cent by the Government of Andhra Pradesh and 31.5 per cent by Warburg Pincus.
APSEZ introduced acquisition of 31.5 per cent stake of Warburg Pincus on March 3 for Rs 120/share and shall acquire the D.V.S. Raju stake of 30 crore shares (58.1 per cent) additionally at Rs 120/share which works out to a consideration of Rs 3,604 crore. The transaction implies EV/EBITDA a number of of 8.9x and P/E a number of of 12.0x (based mostly on FY20 figures) and is a worth accretive transaction for APSEZ shareholders.
Karan Adani, CEO and Whole Time Director of APSEZ stated, “The acquisition of GPL is an extra augmentation of our imaginative and prescient of capitalising on an expanded logistics community impact that generates better worth because it expands. Every extra node that we’re in a position to add to our community permits us to ship a better degree of built-in and enhanced options to our prospects. In this context, GPL is an incredible addition to our portfolio.
“The associated hinterland we will now be able to tap into is one of the fastest growing in the eastern region and with the logistic synergies APSEZ brings to the table, GPL has a potential to become a 250 MMT port. This will undoubtedly help accelerate the industrialisation of AP. The Raju family has built a great port and we will continue to expand the world class asset that has been initiated by them.”
APSEZ, part of globally diversified Adani Group has advanced from a port firm to Ports and Logistics Platform for India. It is the biggest port developer and operator in India with 12 strategically situated ports and terminals — Mundra, Dahej, Tuna and Hazira in Gujarat, Dhamra in Odisha, Mormugao in Goa, Visakhapatnam and Krishnapatnam in Andhra Pradesh, Dighi in Maharashtra and Kattupalli and Ennore in Chennai — symbolize 24 per cent of the nation’s whole port capability.