Ahmedabad: The Adani Ports and Special Economic Zone (APSEZ) Ltd. acquires the 58.1 percent stake owned by DVS Raju and family in Gangavaram Port Limited (GPL).
The acquisition is valued at Rs 3,604 million and is subject to regulatory approval. APSEZ, the transportation division of Adani Group, announced on March 3 the acquisition of Warburg Pincus’ 31.5 percent stake in GPL and along with this acquisition, APSEZ would own 89.6 percent in GPL.
GPL is located in the northern part of Andhra Pradesh, next to the port of Vizag. It is the second largest non-important port in Andhra Pradesh with a capacity of 64 MMT established under concession from the Government of Andhra Pradesh (GoAP) which extends to 2059. It is an everyday, deep-water, multi-purpose port operating at full can handle loaded supercap size vessels up to 200,000 DWT.
GPL currently operates nine sleeping places and has a freehold of 1800 hectares. With a master plan capacity for 250 MMTPAs with 31 berths, GPL also has room to support future growth.
GPL handles a diverse mix of dry and bulk products, including coal, iron ore, fertilizers, limestone, bauxite, sugar, alumina and steel. GPL is the gateway to an interior spread across eight states in eastern, southern and central India.
The acquisition will help GPL take advantage of APSEZ’s pan-Indian footprint, logistics integration, customer-oriented philosophy, operational efficiency and a strong balance sheet to deliver a combination of high growth by increasing market share and adding additional cargo types. improved margins and returns.
In the FY20, GPL had a cargo volume of 34.5 MMT, an income of 1,082 million euros, an EBITDA of 634 million (a margin of 59 percent) and GAT of 516 million of GPL is debt free with a cash balance of more than 500 million.
The company has a paid-up share capital of 51.7 crore shares, of which 58.1 percent are owned by DVS Raju and Family (Promotor), 10.4% by the government of Andhra Pradesh and 31.5% by Warburg Pincus.
APSEZ announced a 31.5 percent stake in Warburg Pincus on March 3 for Rs 120 per share and will also acquire the DVS Raju share of 30 crore shares (58.1%) at Rs 120 / share, which works at an amount of 3 604 Rs. crore. The transaction implies an EV / EBITDA multiple of 8.9x and a P / E multiple of 12.0x (based on FY20 figures) and is a value-added transaction for APSEZ shareholders.
Karan Adani, CEO and CEO of APSEZ all time, said: “The acquisition of GPL is a further complement to our vision to capitalize on an extensive logistics networking effect that generates greater value as it expands. Every extra knot that we can add to our network enables us to deliver a greater level of integrated and enhanced solutions to our customers, in this context GPL is a tremendous addition to our portfolio.
‘The accompanying hinterland we can now utilize is one of the fastest growing countries in the eastern region, and with the logistical synergy that APSEZ brings to the table, GPL has the potential to become a 250 MMT gateway. This will undoubtedly help accelerate the industrialization of AP. The Raju family has built a wonderful port and we will continue to expand the world class asset initiated by them. ”
APSEZ, part of the global diversified Adani Group, has evolved from a port company to Ports and Logistics Platform for India. It is the largest port developer and operator in India with 12 strategically located ports and terminals – Mundra, Dahej, Tuna and Hazira in Gujarat, Dhamra in Odisha, Mormugao in Goa, Visakhapatnam and Krishnapatnam in Andhra Pradesh, Dighi in Maharashtra and Kattupalli and Ennore in Chennai – represent 24 percent of the country’s total port capacity.
Source: Telangana Today