Adani Ports Expands Eastern Seaboard Presence with Strategic Acquisition of Gopalpur Ports
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ToggleAdani Ports has completed the purchase of a 95% ownership in Gopalpur Ports, located in Odisha, for Rs 3,080 crore, marking a significant step to expand its presence along Indias eastern coastline. This strategic acquisition includes buying a 56% share from the Shapoorji Pallonji Group and a 39% share from Orissa Stevedores, both of whom were previous stakeholders in Gopalpur Ports.
In summary:
By acquiring this substantial stake for an enterprise value of Rs 3,080 crore, Adani Ports aims to fortify its operations on Indias east coast. The company announced the completion of the definitive agreement on March 25, 2024, to take over 95% of Gopalpur Ports Limited from its existing shareholders. Said the company in a statement.
Situated in Odisha, Gopalpur Ports is a versatile facility that processes various dry bulk cargoes, including iron ore, coal, limestone, ilmenite, and alumina. This addition is anticipated to enhance Adani Ports existing operations and help achieve a balance in cargo volumes between Indias eastern and western coastlines. Karan Adani, the managing director of Adani Ports, highlighted the importance of this acquisition in strengthening the companys pan-India port network and its integrated logistics strategy.
In the 2023 financial year, Gopalpur Ports managed 7.4 Million Metric Tonnes (MMT) of cargo and has a capacity of 20 MMT. With projections to handle 11.3 MMT of cargo in the current financial year, resulting in operational revenue of ?520 crore, this acquisition is aligned with Adani Ports goal to balance cargo volume across the coasts of India.
The strategic positioning of Gopalpur Port is expected to provide exceptional access to the mining regions of Odisha and adjacent states. Adani Ports and Special Economic Zone (APSEZ) presently operates around 12 ports and terminals across Indias western and eastern coasts, reinforcing its footprint in the countrys maritime sector. The positive response from investors following the acquisition led to a 1.40% increase in Adani Ports shares, priced at Rs 1298.90 on the Bombay Stock Exchange.
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