Public listed player Adani Ports and Logistics on Wednesday received approval from the Andhra Pradesh government
for its proposal to acquire a 10.4 % stake in Gangavaram Port Ltd, the company said in a stock market notification.
Gangavaram Port is engaged in the business of handling various types of dry bulk and break bulk cargo.
Gangavaram Port (GPL) is a multi-cargo facility and handled 32.81 MMT of cargo in FY 21.
It has a capacity of 64 MMT and its operational revenue for financial year 2020-21 was Rs 1,057 crore.
The statement said that the acquisition is in line with company’s strategy of east coast to west coast parity and will provide an access to growth from new hinterland markets as it has a coverage in resource rich and industrial belt in eastern, central and southern India.
Adani Ports will pay Rs 644.78 crore for the 10.4 per cent stake in GPL.
In March this year, Adani Ports agreed to acquire 58.1% stake held in Gangavaram Port by the DVS Raju family for Rs 3,604 crore (around $498 million).
The move saw APSEZ take its stake to 89.6%.
Lately, APSEZ has acquired a bunch of assets across the country. Recently, it bought remaining 25% stake in Adani Krishnapatnam Port from Vishwa Samudra Holdings for Rs 2,800 crore.
It has also completed the acquisition of Dighi Port for a consideration of Rs 650 crore under the bankruptcy law.
The company also signed a deal to get funding from Warburg Pincus, which would invest Rs 800 crore (about $110 million) for a 0.49% stake in the company.