Adani Port To Acquire 31.5 % Stake In AP’s Gangavaram Port Limited

On the 3rd of March, the Adani Ports and Special Economic Zone (APSEZ) announced the acquisition of 31.5 % stake of the Gangavaram Port Limited (GPL.) Previously the stakes were held by Windy Lakeside Investment Limited (an affiliate of Warburg Pincus,) which is now acquired by the Adani Ports valued at Rs. 1,954 crores and subject to regulatory approvals.

Mr. Karan Adani, CEO and Whole Time Director of APSEZ said, “The acquisition of GPL is a part of our continued strategy to build out a port and logistics network that is unmatched in its ability to serve customers across the nation. The location of GPL in the north of AP is a strategic complement to our recent acquisition of the Port of Krishnapatnam that serves the south of AP.”

APSEZ Ltd., is one of the largest private Ports and Logistics companies in Andhra Pradesh. It is also a key subsidiary of the diversified Adani Group.

GPL is located in the northern part of Andhra Pradesh close to the Visakhapatnam port. It is the second largest non major port in Andhra Pradesh with a 64 MMT capacity established under a concession from the Government of Andhra Pradesh (GoAP,) extended till 2059.

The GPL Port It is an all weather, deep water, multi purpose port capable of handling fully laden super cape size vessels of up to 200,000 DWT. Currently, GPL operates 9 berths and has freehold land of 1,800 acres. With a master plan capacity of 250 MMTPA with 31 berths, GPL has sufficient headroom to support future growth.

GPL also handles a mix of dry and bulk commodities including Coal, Iron Ore, Fertilizer, Limestone, Bauxite, Sugar, Alumina, and Steel.

In addition, speaking of the Fiscal Year (2020,) GPL had a cargo volume of 34.5 MMT which generated revenue of Rs. 1,082 crores, the Earnings before interest, taxes, depreciation and amortization (EBITDA) of Rs. 634 crores (margin of 59%) and profit after tax (PAT) of Rs. 516 crores. GPL is debt free with a cash balance of over Rs. 500 crores.

The Company has a paid up equity share capital of 51.7 crores shares of which 58.1% is owned by D.V.S.Raju and Family (Promoter,) 10.4 % by the Government of Andhra Pradesh and 31.5 % by APSEZ.

Stay tuned for further updates.


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