National Company Law Tribunals (NCLT) Ahmedabad and NCLT Hyderabad have given their clearance for Adani Ports and Special Economic Zone to use the composite scheme of arrangement to purchase the remaining 58.1% of Gangavaram Port.
Gangavaram Port (GPL) would turn into a 100%-owned subsidiary of Adani Ports as a result of this equity acquisition. According to the corporation, this equity purchase was made through a share swap transaction.
Next to Vizag Port in Andhra Pradesh’s northern region lies Gangavaram Port. It is the third-largest non-major port, with nine berths and 1800 acres of free hold ground, and it can accommodate fully laden super cape size boats. The port serves as the entrance to a hinterland that spans eight states in eastern, southern, and central India.
The port handled around 30 million metric tonnes (MMT) of cargo in FY22, producing revenue of Rs 1,206 crore and EBITDA of Rs 796 crore, for an EBITDA margin of 66%. GPL’s acquisition will cost about Rs 6,200 crore.
The acquisition of GPL is a crucial step in solidifying our position as India’s largest transport utility and in achieving East Coast & West Coast parity, according to Karan Adani, CEO and full-time director of APSEZ. The business entrance to the hinterland, which is stretched over eight states, is Gangavaram Port, which has good rail and road network access. Our ability to raise our cargo volumes more quickly will be made possible by the recent building of a container handling terminal.
Adani Ports & Special Economic Zone is in the business of creating, running, and maintaining port infrastructure (including port services and associated infrastructure development). It has connected Mundra’s multi-product SEZ and associated infrastructure to the port.
In comparison to the Q1 FY22 figure of Rs 1,312.99 crore, the company’s consolidated net profit fell 16.86% to Rs 1,091.56 crore in Q1 FY23. Operations revenue fell 0.71% to Rs 4,637.95 crore in the first quarter of FY23 from Rs 4,671.19 crore reported in the first quarter of FY22.
On the BSE, Adani Ports & Special Economic Zone shares increased 0.39% to Rs 811.
