Adani Ports and SEZ will Monday finalize the purchase of an additional 58.1% or the entire promoter’s stake in Gangavaram Port, said a person close to the know.
That will increase its stake to 89.11% in the port. The rest is owned by the Andhra Pradesh government.
On March 3, APSEZ said it was acquiring the 31.5% stake held by Warburg Pincus affiliate Windy Lakeside Investment in Gangavaram Port Ltd (GPL) for Rs 1,954 crore. Later it said it would issue back 0.49% shares to the same entity.
Earlier March, APSEZ had said it is also in discussions with the promoters of GPL, DVS Raju and family, to buy their stake in the port company.
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 million metric tonne capacity. It is an all-weather, deepwater, multi-purpose port capable of handling fully laden super cape size vessels of up to 200,000 deadweight tonnage.
GPL, with a concession period till 2059, currently operates nine 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.
In FY20, GPL handled 34.5 MMT of cargo and generated revenue of Rs 1,082 crore, an operating profit of Rs634 crore and a net profit of Rs 516 crore. It is debt-free with a cash balance of more than Rs 500 crore.
Source: Economic Times