Shares of the company were trading 0.6 percent higher at Rs 812.9 on the BSE at 10:19 am.
Shares of Adani Group’s ports and logistics company Adani Ports and Special Economic Zone (APSEZ) rose 1.5 percent on Tuesday after the company received approval from NCLT Ahmedabad and NCLT Hyderabad to acquire the remaining 58.1 percent stake in Gangavaram Port Limited (GPL).
GPL will now be a 100 percent subsidiary of APSEZ. Shares of the company were trading 0.6 percent higher at Rs 812.9 on the BSE at 10:19 am.
“Gangavaram Port has excellent rail and road network connectivity and is the business gateway to the hinterland spread over eight states. The recent addition of a container handling terminal will enable us to accelerate our cargo volume growth,” said Karan Adani, Chief Executive Officer and Whole Time Director of APSEZ.
Gangavaram Port is located in the northern part of Andhra Pradesh adjacent to Vizag Port and is the third largest non-major port in Andhra Pradesh with a capacity of 64 MMT established under a concession from the government of Andhra Pradesh which extends till 2059. The port has the capacity to handle super laden cape size vessels full up to 200,000 DWT.
“The port handles a diverse mix of dry and bulk commodities, including coal, iron ore, fertiliser, limestone, bauxite, sugar, alumina and steel. Gangavaram Port is a port of entry for hinterlands spread across eight states across eastern, southern and central India,” the company said in its exchange filing.
The acquisition is valued at around Rs 6,200 crore, and the company has acquired a 31.5 per cent stake in the port from Warburg Pincus and 10.4 per cent from the Andhra Pradesh government during FY22. It will now acquire 58.1 per cent stake from DVS Raju and family through a share swap arrangement.