Karan Adani, MD, Adani Ports.
| Photo Credit: The Hindu
Adani Ports and Special Economic Zone Ltd. (APSEZ) said it had entered into a definitive agreement to purchase the 56% stake of the Shapoorji Pallonji Group and 39% stake of Orissa Stevedores Ltd. (OSL) in Gopalpur Port Ltd. (GPL). According to the Shapoorji Pallonji Group, the acquisition is being made at an enterprise value of ₹3,350 crore.
Gopalpur port is located on the east coast of India and has the capacity to handle 20 MMTPA. The Government of Odisha awarded a 30-year concession to GPL in 2006, with the provision of two extensions of 10 years each.
As a deep draft, multi-cargo port, Gopalpur handles a diverse mix of dry bulk cargo, including iron ore, coal, limestone, ilmenite, and alumina.
Karan Adani, Managing Director, APSEZ, in a statement said, “The acquisition of Gopalpur Port will allow us to deliver more integrated and enhanced solutions to our customers. Its location will allow us unprecedented access to the mining hubs of Odisha and neighboring states and allow us to expand our hinterland logistics footprint.”
“GPL will add to the Adani Group’s pan-India port network, significantly enhance overall cargo volume, and strengthen APSEZ’s integrated logistics approach,” he said.
This is the second port divestment in the last few months from the diversified Construction & Infrastructure, Real Estate and Energy conglomerate.
It had earlier divested its Dharamtar Port to JSW Infrastructure Limited for an enterprise value of ₹710 crore.
A Shapoorji Pallonji Group spokesperson said, “The planned divestments of Gopalpur Port and Dharamtar Port, at a significant enterprise value, demonstrate our Group’s ability to turn around assets and create stakeholder value in a relatively short period of time, capitalising our core strengths in project development and construction.”
“These divestments are key milestones in our roadmap to reduce Group debt and set the stage for growth, taking advantage of the macro trends for demand in our core businesses, both in India and overseas,” the spokesperson said.
