Adani Ports will acquire 58% stake in Gangavaram Port for ₹3,604 crore, the company announced in a regulatory filing on Tuesday.
Adani Ports had announced acquisition of Warburg Pincus’s 31.5% stake in GPL on March 3, 2021 and together with this acquisition, APSEZ would have 89.6% stake in GPL.
“We would like to inform that the Company has signed Agreement on March 23, 2021 between DVS Raju & Family and the Company, to acquire 58.1% stake of GPL,” it said.
“The acquisition is in line with 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,” Adani Ports added.
GPL is located in the northern part of Andhra Pradesh next to Vizag Port. It is the second-largest non-major port in Andhra Pradesh with a 64 MMT capacity established under a concession from the Government of Andhra Pradesh (GoAP) that extends till 2059.
It is all-weather, deep water, multipurpose port capable of handling fully laden super cape size vessels of up to 200,000 DWT. Currently, GPL operates 9 berths and has freehold land of ~1,800 acres. “With a master plan capacity for 250 MMTPA with 31 berths, GPL has sufficient headroom to support future growth,” the company said.
Adani Ports added further that the acquisition is expected to be completed within 6 months.
Gangavaram Port Limited is engaged in the business of handling various types of Dry bulk and Break bulk cargo.