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Adani Ports is set to acquire Odisha's Gopalpur Port for Rs. 3,080 crore, a move that will strengthen its pan-India network and enhance its presence on the east coast.
The port, which handled 7.4 million metric tons of cargo in 2023, is expected to manage 11.3 million metric tons this fiscal year, boosting Adani's logistics reach.
The deal is subject to regulatory approvals and other conditions.

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Gopalpur Port deals with a varied range of dry bulk cargo

Adani Ports acquires Odisha's Gopalpur Port for Rs. 3,080 crore

By Pratyaksh Srivastava

Mar 26, 2024

11:42 am

What's the story

Adani Ports and Special Economic Zone (APSEZ) has successfully procured a 95% stake in Odisha's Gopalpur Port. The equity value of this transaction is Rs. 1,349 crore, and the enterprise value is Rs. 3,080 crore. This purchase includes a 56% stake from the Shapoorji Pallonji Group (SP Group) and a 39% stake from Orissa Stevedores Ltd (OSL).

Approvals needed

Finalization of transaction pending regulatory approvals

The finalization of this deal hinges on obtaining necessary regulatory approvals and satisfying other prerequisites. Beyond the enterprise value, an additional amount of Rs. 270 crore is projected to be payable after a period of 5.5 years, contingent on meeting specific conditions set by the sellers.

Benefits

Adani Ports to bolster pan-India network

Karan Adani, Managing Director at Adani Ports, expressed that securing Gopalpur Port will augment APSEZ's integrated logistics strategy. He highlighted that the port's advantageous location will offer unparalleled access to Odisha's mining hubs and those in adjacent states. This acquisition is anticipated to broaden its hinterland logistics reach and balance cargo volume between India's east and west coasts.

Stats

Gopalpur Port's performance and future expectations

Gopalpur Port deals with a varied range of dry bulk cargo such as iron ore, coal, limestone, ilmenite, and alumina. In fiscal year 2023, it processed 7.4 million metric tons (MMT) of cargo with a capacity of 20 MMT. The port is forecasted to manage 11.3 MMT of cargo in the current fiscal year while generating an operational revenue of Rs. 520 crore.

Boost to Adani

Acquisition to enhance Adani Ports' presence

The procurement of Gopalpur Port is predicted to complement Adani Ports' existing ports and fortify its presence on the east coast. APSEZ, the largest ports and logistics company in India, manages approximately 12 ports and terminals along India's western and eastern coasts. The company's ambition is to evolve into the world's premier ports and logistics platform within the next decade.