Adani Ports Ltd share tanks almost 2% even on acquiring controlling stakes in Gangavaram Port:
Adani Ports Ltd: It is one of the largest multi-port operator companies in India located in Ahmedabad, Gujarat. While the company works under the subsidiary of Adani Group, which is an integrated infrastructure corporation. Initially, the company was also known as Mundra Port and Special Economic Zone Limited and later it changed into Adani Ports SEZ Limited. The companies operate at Mundra Port and currently operate 10 ports across India, which consists of 45 berths and 14 terminals across 6 states. The present Chairman & Managing Director of the company is Gautam Adani.
Meanwhile, on Wednesday, March 24th, the shares of the company plunged almost 2% in the stock market. The main reason for this is the company will acquire controlling stakes in Gangavaram Ports (GPL) from DVS Raju and his family for Rs. 3,604 crores.
After the acquisition of stakes from DVS Raju, the total stakes hold by the company reached 89.60% in Gangavaram Port, which is located in the northern part of Andhra Pradesh, Vizag.
Whereas the DVS Raju & Family holds almost 58.10% stakes in Gangavaram Port Limited (GPL). The Gangaravam Port is one of the largest ports in Andhra Pradesh with almost 64 MMT capacity establishment under the Government of Andhra Pradesh (GoAP) up to 2059.
“Adani Ports and Special Economic Zone (APSEZ), India’s largest private ports and logistics company, is acquiring the 58.1 percent stake held by DVS Raju and family in Gangavaram Port Limited (GPL),” the company said in a statement.
In the financial year 2020-21, the GPL reported a cargo volume of 34.50 MMT. While the revenue of the company stood at Rs. 1,082.00 crores in FY20. On the other side, the companies EBITDA stood at Rs. 634 crores and profit after tax (PAT) stood at Rs. 516 crores. Whereas the company is debt-free with a cash balance of Rs. 500 crores.
GPL located north of AP, so as a strategic complement to our recent acquisition of the Krishnapatnam Port that serves the south of AP. We believe that GPL has great potential to complement its bulk cargo terminals with new cargo categories that we intend to develop, said Karan Adani, CEO of Adani Ports SEZ.
The company reached its 52-week high at Rs. 754.65 on March 3rd, 2021, and a 52-week low at Rs. 203.40 on March 23rd, 2020 respectively.
Whereas the Citi global research firm maintained buy call on the stock with a target price of Rs. 935 per equity share.
However, the shares of Adani Ports Limited reported a bearish trend in the stock market on Wednesday. It lost 8.05 points with a 1.09% decrease and reached 729.60 INR. While in BSE, the company lost 8.40 points with a 1.14% decrease and reached 729.80 INR.
Stock Market on March 24th:
On Wednesday, both Sensex and Nifty reported a bearish trend in the stock market after bullish reports in the last session of the market. The Sensex is trading below 49,500 levels and nifty trading below 14,700 levels in the stock market. The Sensex lost 575.81 points with a 1.15% decrease and reached 49,477.77 levels. While the nifty lost 169.45 points with a 1.14% decrease and reached 14,643.90 levels.
On the other side, the number of coronavirus cases in India on Wednesday, March 24th reached 1,17,34,058 with almost 1,60,441 deaths.
In the border markets, the S&P BSE SmallCap index reported a bearish trend in the stock market on Wednesday. It lost 98.55 points with a 0.47% decrease and reached 20,674.80 levels. Whereas the S&P BSE MidCap lost 121.88 points with a 0.60% decrease and reached a 20,313.34 level. But, the Nifty Bank lost 597.70 points with a 1.75% decrease and reached 33,563.95 level.
Top Gainers on March 24th: Cipla, Asian Paints, Power Grid Corporation, Sun Pharma, and Dr. Reddy’s Laboratories are the top gainers in today’s stock market.
Top Losers on March 24th: Hindalco Industries, Tata Steel, ONGC, Axis Bank, and SBI are the top losers in today’s stock market.