Adani buys 95% stake in Gopalpur port for $360 million

Adani Ports and Special Economic Zone Ltd has acquired a 95% stake in Odisha’s Gopalpur Port Ltd (GPL) for an enterprise value of ₹3,080 crore ($360 million), the leading ports and logistic company informed the stock exchanges on Tuesday.

Giving a break-up of the transaction, Adani Ports said it bought Shapoorji Pallonji Group’s 56% stake in Gopalpur Port and Orissa Stevedores Ltd’s 39% stake for an equity consideration of ₹1,349 crore ($160 million).

Gopalpur port is located on the east coast of India and has the capacity to handle 20 million metric tons per annum. The Odisha government had awarded a 30-year concession to GPL in 2006, with the provision of two extensions of 10 years each.

The concessionaire can design and expand the port as per market demand. GPL has also received more than 500 acres of land on lease for development, with an option to receive additional land on lease to meet future capacity expansions.

The deep draft, multi-cargo port handles a diverse mix of dry bulk cargo, including iron ore, coal, limestone, ilmenite, and alumina. The port also supports the growth of mineral-based industries in its hinterland, such as iron and steel, alumina and others, the company said.

“The acquisition will allow us to deliver more integrated and enhanced solutions to 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,” Karan Adani, managing director of APSEZ, said in a statement.

“GPL will add to the Adani Group’s pan-India port network, east coast versus west coast cargo volume parity and strengthen APSEZ’s integrated logistics approach,” Adani added.

Adani Ports own 13 domestic ports in eight maritime states – Gujarat, Maharashtra, Goa, Kerala, Andhra Pradesh, Tamil Nadu, Odisha, and West Bengal.

This fiscal year, GPL is expected to clock a 52% year-on-year growth in cargo-handling to the tune of about 11.3 mmt and earn about ₹520 crore ($60 billion) in revenue, a 39% y-o-y growth, the release said.

The company is expected to post earnings before taxes, depreciation and amortization of ₹232 cr ore, which is a 65 % increase from the previous fiscal year, it added.