On March 25, 2024, Adani Ports and Special Economic Zone Ltd announced that it has entered into a definitive agreement to acquire a 95% stake in Gopalpur Ports Limited (“GPL”) from the current shareholders. This acquisition includes approximately 56% stake from SP Port Maintenance Private Limited (“SP Group”) and around 39% stake from Orissa Stevedores Limited (“OSL”).
Gopalpur Ports Limited (GPL), is involved in the business of handling various types of dry bulk and break bulk cargo. It operates as a deep draft, multi-cargo port, specializing in handling a diverse mix of dry bulk cargo, including iron ore, coal, limestone, ilmenite sand, and alumina. In the fiscal year 2023, GPL handled 7.4 million metric tons (MMT) of cargo, utilizing its capacity of 20 MMT, generating operational revenue of Rs. 373 crore. For the fiscal year 2024, GPL is projected to handle approximately 11.3 MMT of cargo and earn an estimated operational revenue of Rs. 520 crore.
The acquisition of GPL by Adani Ports is in line with the company’s strategic objective of achieving East Coast to West Coast parity. GPL’s location provides unprecedented access to the mining hubs of Odisha and neighboring states, facilitating the expansion of Adani Ports’ hinterland logistics footprint. The transaction is subject to approval from the Commerce and Transport Department, Government of Odisha, and is expected to be completed by the first quarter of fiscal year 2025 (Q1 FY25).
The acquisition transaction involves obtaining a 95% stake in GPL at a cost of Rs. 1,349 crore, with the overall enterprise value set at Rs. 3,080 crore, subject to potential adjustments upon finalization. GPL, established on July 24, 2006, specializes in the handling of various dry bulk and break bulk cargo types. Over the past three fiscal years, GPL has demonstrated consistent operational revenue, with figures for FY 2020 – 21 at Rs. 436 crore, FY 2021 – 22 at Rs. 404 crore, and FY 2022 – 23 at Rs. 373 crore. This acquisition represents a strategic move aimed at expanding our presence and capabilities in the cargo handling industry, positioning us for further growth and market leadership.