Adani Ports acquires a 95% stake in Gopalpur Ports Limited

India’s largest port operator Adani Ports and Special Economic Zone Limited has entered into a definitive deal to acquire a 95% stake in Gopalpur Ports Limited (GPL).

Under the terms of the deal, Gopalpur Port would be acquired from its existing shareholders, a 56% stake from SP Port Maintenance Private Limited, and a 39% stake from Orissa Stevedores Limited.

Commenting on the cash consideration of the acquired shares, Adani Ports said the equity consideration was Rs. 1,349 crore, with an enterprise value of Rs. 3,080 crore.

Gopalpur port is located on the east coast of India and can handle 20 MMTPA. The Government of Odisha awarded a 30-year concession to GPL in 2006, with the provision of two extensions of 10 years each.

As a deep draft, multi-cargo port, Gopalpur handles a diverse mix of dry bulk cargo, including iron ore, coal, limestone, ilmenite, and alumina. The port plays an important role in supporting the growth of mineral-based industries in its hinterland, like iron & steel, as well as alumina.

The concessionaire has full flexibility to design and expand the port in line with the market demand. GPL has received more than 500 acres of land on lease for development, with an option to receive additional land on lease to meet future capacity expansions.

The port handled 7.4 MMT of cargo in FY 23 and achieved an operational revenue of Rs. 373 crore for the year.

GPL is estimated to handle about 11.3 MMT cargo and earn an estimated operational revenue of Rs. 520 crore for FY 24.

“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,” Karan Adani, Managing Director of APSEZ, said.

The acquisition is subject to approval from the Commerce and Transport Department, Govt. of Odisha, and Adani expects it to be completed by Q1 FY25.