Adani Ports on Tuesday said in an exchange filing that it has received approval from the Andhra Pradesh government for the acquisition of a 10.4% stake in Gangavaram Port Limited (GPL) in Visakhapatnam.
“The Company has received letter/order from Andhra Pradesh Maritime Board dated 23rd August 2021 received on 24th August 2021 intimating the approval of the proposal of acquisition of 10.4% stake of GPL by the Company from Government of Andhra Pradesh. “ The company said in the exchange filing.
“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,” it further added.
The consideration for the proposed acquisition of a 10.4% equity stake of GPL is Rs. 644.78 crores, the transaction of which is expected to be completed within one month.
GPL was incorporated in 2001 and engages in the business of handling various types of dry bulk and break bulk cargo. The port is a multi-cargo facility and handled 32.81 MMT of cargo in FY 21. It has a capacity of 64 MMT. The operational revenue for the financial year 2020-21 was Rs. 1,057 Crores.
Adani Port and Special Economic Zone Limited, under Adani Group, is India’s largest private multi-port operator. On Tuesday Adani Port shares closed Rs. 694.9 per share on BSE.