Shares of Adani Ports and Special Economic Zone rose as much as 4.67 per cent to hit an intraday high of Rs 755.35 after the company informed exchanges that it has acquired controlling stake in Gangavaram Port (GPL) from DVS Raju Family. Adani Ports and SEZ acquired additional 58.1 per cent stake in Gangavaram Port from DVS Raju Family for Rs 3,604 crore taking its stake in Gangavaram Port to 89.6 per cent. (Track Adani Ports stock price here)
Adani Ports had earlier this month acquired Warburg Pincus’ 31.5 per cent stake in Gangavaram Port.
Gangavaram Port 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 established under concession from Government of Andhra Pradesh that extends till 2059. It is an 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 free hold land of 1,800 acres. With a master plan capacity for 250 million metric tonne per annum with 31 berths, GPL has sufficient headroom to support future growth, Adani Ports said in a press release.
Gangavaram Port handles a diverse mix of dry and bulk commodities including Coal, Iron Ore, Fertilizer, Limestone, Bauxite, Sugar, Alumina, and Steel. GPL is the gateway port for a hinterland spread over 8 states across eastern, southern and central India.
“The acquisition of GPL is a further augmentation of our vision of capitalizing on an expanded logistics network effect that generates greater value as it expands. Every additional node that we are able to add to our network allows us to deliver a greater level of integrated and enhanced solutions to our customers. In this context, GPL is a tremendous addition to our portfolio,” Karan Adani, CEO and whole time director of Adani Ports and SEZ, said in a statement.
As of 11:53 am, Adani Ports and SEZ traded 1.78 per cent higher at Rs 734, outperforming the Sensex which was trading on a flat note.