Adani Ports acquires 95% stake in Odisha’s Gopalpur Port for Rs 3,080 crore

Mumbai: Gautam Adani-run Adani Ports and Special Economic Zone (APSEZ) will buy a 95% stake in Odisha’s Gopalpur Port (GPL) at an enterprise value of Rs 3,080 crore to boost its east coast presence, the company said in a press release on Tuesday.

In addition to the enterprise value, the company said there is a contingent consideration of Rs 270 crore which is likely to be payable after 5.5 years, subject to certain conditions.

In a regulatory filing, the company said that it has entered into an agreement to purchase the 56 per cent stake of the SP Group and 39 per cent of Orissa Stevedores Limited (OSL) in Gopalpur Port Limited (GPL).

Gopalpur port has the capacity to 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. 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.

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 neighboring 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.”

In Financial Year 24, GPL is estimated to handle about 11.3 MMT cargo (YoY growth – 52 per cent) and earn a revenue of Rs 520 crore (YoY growth – 39 per cent) and achieve EBITDA of Rs 232 crore (YoY growth – 65 per cent).

“In our view, the Gopalpur Port is all set for strong growth and margin expansion in FY’25 with opportunities already identified for achieving higher operational efficiencies and infra debottlenecking, implying further value accretion for APSEZ shareholders,” the company said.