APSEZ acquires Gopalpur Port in Orissa for Rs 3,080 crore

The power sector incumbent Adani Ports and Logistics has agreed to the acquisition of a 95% stake in Gopalpur Port Limited.

APSEZ acquires Gopalpur Port in Orissa for Rs 3,080 crore

 Adani Ports and Special Economic Zone Ltd (APSEZ), India’s largest ports and logistics company, has entered into a definitive agreement to purchase the 56% stake of the SP Group and 39% of Orissa Stevedores Limited (OSL) in Gopalpur Port Limited (GPL). The acquisition is made at an enterprise value of INR 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. The port is well connected with its hinterland through the national Highway NH16 and a dedicated railway line connects the port with the Chennai-Howrah main line.

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In FY24, GPL is estimated to handle about 11.3 MMT cargo (YoY growth - 52%) earn a revenue of Rs  520 cr (YoY growth - 39%), and achieve EBITDA of Rs 232 cr (YoY growth - 65%). In our view, the Gopalpur Port is all set for strong growth and margin expansion in FY25 with opportunities already identified for achieving higher operational efficiencies and infra debottlenecking, implying further value accretion for APSEZ shareholders.

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