Adani Ports announced on Tuesday that the Andhra Pradesh government has approved the proposal of acquisition of 10.4 per cent stake of Gangavaram Port Limited for Rs 644.78 crore. “We would like to inform that 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 per cent stake of GPL by the Company from Government of Andhra Pradesh,” it said in a regulatory filing.
The acquisition is subject to approvals under applicable laws, including the nod of the Competition Commission of India. The transaction is expected to be complete in a month’s time. “The consideration for proposed acquisition of 10.4% equity stake of GPL is Rs. 644.78 crore,” stated Adani Ports.
“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,” said the company in the filing.
Gangavaram Port handles various types of dry bulk and break bulk cargo. In FY21, this multi-cargo facility handled 32.81 MMT of cargo. It has a capacity of 64 MMT.
Incorporated on September 27, 2001, GPL reported revenues of Rs 964 crore in FY19, Rs 1,082 crore in FY20 and Rs 1,057 crore in FY21.
Shares of Adani Ports opened 0.73 per cent higher on Wednesday at Rs 700 against the previous close of Rs 694.90 on BSE. The stock rose 3 per cent to hit an intraday high of Rs 715 on BSE. With a market capitilisation of Rs 1,44,545.82, the share stands higher than 5 day, 20 day, 50 day and 200 day moving averages but lower than 100 day moving averages.
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