Adani Ports soars after inking deal to acquire 95% stake in Gopalpur Ports

Adani Ports rise: Adani Ports and Special Economic Zone (APSEZ) surged up to 2 per cent to reach an intraday high of Rs 1,329.90 per share on Wednesday. The surge followed APSEZ's announcement on Tuesday regarding the acquisition of a 95 per cent stake in Gopalpur Ports Limited (GPL) from existing shareholders for Rs 1,349 crore.

However, the acquisition is subject to approval from the Commerce and Transport Department, Government of Odisha.

According to an exchange filing, the agreement, finalised on March 25, 2024, entails acquiring a 56 per cent stake from SP Port Maintenance Private Limited (SP Group) and a 39 per cent stake from Orissa Stevedores Limited (OSL) of GPL.

Karan Adani, Managing Director of APSEZ, said, “The acquisition of Gopalpur Port will allow us to deliver more integrated and enhanced solutions to our customers. Its location will allow us unprecedented access to the mining hubs of Odisha and neighbouring states and allow us to expand our hinterland logistics footprint. GPL will add to the Adani Group’s pan-India port network, east coast vs west coast cargo volume parity and strengthen APSEZ’s integrated logistics approach.”

Gopalpur port, situated on the east coast of India, has a handling capacity of 20 MMTPA and deals with various types of dry bulk and break bulk cargo. In the financial year 2023 (FY23), it handled 7.4 MMT of cargo and generated an operational revenue of Rs 373 crore. 

The port is estimated to handle about 11.3 MMT of cargo and earn an operational revenue of Rs. 520 crore in financial year 2024 (FY24).

With projected growth and margin expansion in financial year 2025 (FY25), the Gopalpur Port presents promising opportunities for APSEZ shareholders.