Adani Ports to acquire 95% stake in Gopalpur Port for Rs 1,349 crore; Here's why

Adani Group's port operator, Adani Ports & Special Economic Zone Ltd. (APSEZ), is acquiring a 95% stake in Gopalpur Ports Ltd. for Rs 1,349 crore or around $161 million. 

Adani said the acquisition aims to strengthen its position on the East Coast, which aligns with its strategy to achieve parity between India's East and West coasts. 

The company will acquire a 56% stake from SP Port Maintenance Pvt. Ltd., part of the SP Group, and a 39% stake from Orissa Stevedores Ltd., valuing the enterprise at Rs 3,080 crore.

Acquisition approval 

In an exchange filing, The company said the completion of this transaction is contingent upon receiving the green light from the Commerce and Transport Department of the Government of Odisha. 

The deal is expected to be finalized by the first quarter of the financial year 2025, it said. 

Gopalpur Port's operational highlights

Gopalpur Port, a deep-draft, multi-cargo port, is adept at handling a wide array of dry bulk cargo, including iron ore, coal, limestone, ilmenite sand, and alumina. With a capacity of 20 Million Metric Tons (MMT), it handled 7.4 MMT of cargo in the financial year 2023.

The port is projected to handle 11.3 MMT of cargo in the current financial year, generating an operational revenue of Rs 520 crore.

Strategic Importance for Adani Ports 

Adani Ports believes that the acquisition is a strategic fit, offering unparalleled access to the mining hubs of Odisha and neighbouring states.

The move is expected to enhance the Adani Group's pan-India port network and support its integrated logistics approach.

Karan Adani, APSEZ's Managing Director, said the acquisition of Gopalpur Port will allow the company 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, he said.

"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," he added.