The Adani Ports and Particular Financial Zone (APSEZ) Ltd. is buying the 58.1 per cent stake held by D.V.S. Raju and household within the Gangavaram Port Restricted (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 Three and along with this acquisition, APSEZ would have 89.6 per cent stake in GPL.
GPL is positioned within the northern a part of Andhra Pradesh subsequent to Vizag Port. It’s the second largest non-major port in Andhra Pradesh with a 64 MMT capability established below concession from the Authorities of Andhra Pradesh (GoAP) that extends until 2059. It’s an all-weather, deep water, multipurpose port able to dealing with totally laden tremendous cape measurement vessels of as much as 200,000 DWT.
At present, 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 development.
GPL handles a various mixture of dry and bulk commodities together with Coal, Iron Ore, Fertilizer, Limestone, Bauxite, Sugar, Alumina, and Metal. 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 powerful stability sheet to ship a mixture of excessive development by enhancing market share and add further 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 corporate has a paid up share capital of 51.7 crore shares of which 58.1 per cent is owned by DVS Raju and Household (Promoter), 10.four per cent by the Authorities 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 Three for Rs 120/share and shall purchase 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 (primarily based on FY20 figures) and is a worth accretive transaction for APSEZ shareholders.
Karan Adani, CEO and Complete Time Director of APSEZ mentioned, “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. Each further node that we’re ready so as to add to our community permits us to ship a better degree of built-in and enhanced options to our prospects. On this context, GPL is an incredible addition to our portfolio.
“The related hinterland we’ll now be capable of faucet into is among the quickest rising within the jap area and with the logistic synergies APSEZ brings to the desk, GPL has a possible to turn out to be a 250 MMT port. This can undoubtedly assist speed up the industrialisation of AP. The Raju household has constructed an incredible port and we’ll proceed to develop the world class asset that has been initiated by them.”
APSEZ, part of globally diversified Adani Group has developed from a port firm to Ports and Logistics Platform for India. It’s the largest port developer and operator in India with 12 strategically positioned 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 — characterize 24 per cent of the nation’s complete port capability.