M&A
Adani Ports gets courts' nod to buy remaining 58% in Gangavaram Port
Ports and logistics company Adani Ports and Special Economic Zone Ltd (APSEZ) has received approvals from the courts in Ahmedabad and Hyderabad for acquiring the remaining 58.1% stake in Gangavaram Port Ltd (GPL). GPL will become a 100% subsidiary of APSEZ. APSEZ had already acquired 31.5% stake in the company from Warburg Pincus and another 10.4% from the Government of Andhra Pradesh during FY22. The acquisition of 58.1% stake from DVS Raju & family will be through a share swap arrangement and will result in issuance of around 47.7 million APSEZ shares to the erstwhile GPL promoters. Gangavaram Port is located in the northern part of Andhra Pradesh next to Vizag Port. In FY2022, it handled cargo volumes of around 30 million metric tonnes, and generated revenues of INR 1,206 crore and an EBITDA of INR 796 crore, which resulted in EBITDA margin of 66%. GPL is a debt-free company with a cash balance of INR 1,293 crore as of 31 March.
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