Adani Ports announces the acquisition of a 95 percent stake in Gopalpur Port in Odisha for INR 3,080 crore, aiming to bolster its access to mining centers.
Adani Ports and Special Economic Zone (APSEZ) reveals plans to acquire a 95 percent stake in Gopalpur Port (GPL) in Odisha for Rs 3,080 crore, strengthening its foothold in the mining sector. The acquisition involves purchasing 56 percent from the Shapoorji Pallonji Group and 39 percent from Odisha Stevedores, with the latter remaining a joint venture partner post-acquisition.
This strategic move positions Adani Ports, already operating Dhamra and Gangavaram ports on the eastern coast, to tap into Odisha’s mining hubs. Karan Adani, CEO of APSEZ, highlights Gopalpur Port’s strategic location, facilitating expansion of the company’s hinterland logistics footprint and enhancing overall cargo volume.
The deal, expected to be finalised in FY25’s first quarter, includes a contingent consideration of INR 270 crore after 5.5 years, totaling INR 3,350 crore. With GPL estimated to handle 11.3 million tonnes of cargo in FY24, Adani Ports anticipates significant growth opportunities and margin expansion in FY25.
The presence of large steel plants in eastern India is expected to drive coking coal and limestone imports, with Gopalpur Port poised to be the least cost port for upcoming facilities in TATA SEZ. Deutsche Bank served as the financial advisor to SP Group in the transaction, highlighting the prominence of Indian strategics in acquiring domestic assets and driving infrastructural growth.
