The Adani Ports and Special Economic Zone (APSEZ) Ltd. is now acquiring the 58.1% stake held by D.V.S. Raju and family in the Gangavaram Port Limited (GPL). This is observed that these stakes will be about Rs 3,604 crore which is estimated at around $498 million. According to the sources, it is believed that this move will be APSEZ take its stake to 89.6%. However, the remaining 10.4% is held by the Andhra Pradesh government. For those who are not aware of Gangavaram Port, it is located in Vishakapatnam, Andhra Pradesh, India’s deepest port. It was inaugurated in July 2009. It has a depth of 21m. Gangavaram Port is located next to Vizag Port. And Adani Port and APSEZ are India’s private ports and logistics. The Government of Andhra Pradesh has also informed us that this port will surely be extended till 2059. This will be a great step towards the development of ports as they play a major role in our lives and in our economy as a whole.
Adani’s acquisition of Warburg Pincus
Recently India’s most renowned port Adani port has acquired stakes of Warburg Pincus as a 31.5% stake in GPL on March 3, 2021. Together with this acquisition, APSEZ would have an 89.6% stake in Gangavaram Port. According to the Sources it is observed that the CEO of Adani has said that the acquisition of GPL is a further augmentation of our vision of capitalizing on an expanded logistics network. This will helps in the integration solution to the consumer of these ports.
Importance of Gangavaram Port
This port has a huge capacity of 64 million metric tonnes. It can have the capacity for 250 MMTPA with 31 berths which are way more sufficient headroom to suppress future growth. It also has a capacity of 250 MMT. This step taken by Adani port is a very attractive valuation. This will benefit the most from India’s increasing contribution to a global market in the trading sector.
Adani Ports Shares
The port has gained as much as 4.6% in early trade to Rs 755 apiece. As it is observed that this rise in stock is for the third time straight in this session. The stock crossed its 12-month consensus price target of Rs 729 on Tuesday.